I paid 5500$ for a 92 TE with 120kmiles. Head gasket done, cosmetically 8/10 (a few minor scatches, two small dents). Had to replace front shocks, flex disc, rear brakes, balljoint, steering damper, blower motor, tandem pump, distributor rotor/cap for about 2000$ total. Everything works perfect now.
Your car does not to be in very good condition. I'd be worried about the transmission and the alignment as well. Also, the general condition might indicate some abuse. I would look for a car in better condition, it might be cheaper in the end.
Bruno