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ANY rust and ANY rearend sag means it's not worth what he's asking. Lowball him, and good luck.
Unfortunately, now that most people that have realized the new popular fad involving biodiesel/WVO and the German diesel cars, it will be easier to get more than the car's worth realistically. So- he may hold out for what he's asking and might be successful in doing so.
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'02 BMW 325i
'85 300D 450k
'93 190E 2.6 170k(killed by tree)
'08 Ducati Hypermotard 1100S 6k
'06 Ducati S2R800 14k(sold)
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