Greg Fletcher
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Joel has some excellent points. $500 does seem like a fair price for this one. If it has a gang of rust, move on to the next one. Rust in floor pans is common and typically not a major issue if it's localized and hasn't effected the frame or rockers.
Spending more on a car that's in better condition will not only give you a nice driver, but you can also start a rolling restoration. This lets you tackle smaller jobs and put the car in better condition without the frustration of having a car laid up for ages waiting for parts, money and time to mess around with it.
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