Morning!, a few peeps would be more than happy with a BMW coupe as there first car, When it comes to rust DO NOT TAKE THE CHEAP OPTION, if it is just sanded down and skim with filler then in 6 months time it will be bubbling again, So it will need rubbing down to shiney metal, treating and coating properly and the panel painted, Honestly in the mid-long run(and re sale) it will be worth it. Air bag light, search the forums it’s a common fault Clutch smell? Without sounding insulting, you are not riding the clutch/downing a lot of town work? Are you sure its clutch not brakes? The smell of clutch is normally alongside slipping/juddering