Ok, test drive it for $1000, and when the oil light/buzzer comes on, because the oil warning system works on the tach signal, explain that you'll willingly pay 750$, because it will need at least an oil pump, at worst bearings and a rebuild.
It's rather unfortunate, but if the car is at least in running/ driving condition, and will pass an inspection with limited work, its worth $1000, and will probably save that in fuel costs for the average commuter in a short time.
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