Nice, a BMW! But.. these old bmw diesel engines are money eaters. Be ready to change turbine, nozzles, engine head, etc etc if previous owner hadn't done proper rebuild. Good luck!
IDK, maybe they really are their parents car and kids are just showing off.
And its Latvia lol - insurance for that maybe is 500 euros per year, because its probably insured on all situations what can happen. Mine basic insurance for my ex 3.5l bimmer was about 70 euros per year, if i remember correctly.
Come to Riga and see the cars which are standing at parking lots in front of highschools/universities. About each third car is from luxury class there.