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Do you have a third option? Did you check the marketplace for this car or an m4? Should give you your answer pretty quick.
As I’ve said before the m light cars have gotten too expensive relative to the real deal. Personally I’d get an m4 or be looking at other cars in the 1k/month range.
Do you even know what they are selling the car to you for. With the mileage penalty pretty much negates any benefit of it being a demo unless it’s a massive discount. Too lazy to do the calculator for you but I’m guessing a new one at MSRP and base mf is better than what you were offered.