$1000 looks like a fair price, try to talk him down to $800 or $900 though, then you can buy your self a new radio.

Make sure the engine is stone cold when you go to test drive it. It should start quickly and easily after the glow plug light goes off. Check carefully for rust and take a magnet along to be sure that the hood and trunk are the original aluminum pieces. If not you can try to talk him down some more on the price.

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1979 240D- 316K miles - VGT Turbo, Intercooler, Stick Shift, Many Other Mods - Daily Driver

1982 300SD - 232K miles - Wife's Daily Driver

1986 560SL - Wife's red speed machine