I am suffering RWD withdrawl. I am looking at a 1974 164, and need advice on how much to offer the seller(or how much I should try to talk him down), and anything I really need to be cautious about. Back in the 80s I had a couple 71 164's.

The car:
A "California car" that has been in the upper midwest for about two years, 150xxx, what appears to be minor rust around the edges of the wheel wells, all trim is intact, has a pretty big dent on one side, the paint is not shiny and is a repaint job done a while back, interior is pretty good(seat cracks but not too bad, dash mat, door pockets missing), tires are shot. The engine compartment is a mess, but the engine block seemed pretty dry on quick examination. The washer fluid tank is missing and there is a rigged up system with a washer fluid jug laying in the engine compartment.

When I looked at the car, the owner started it up. He pumped the gas petal and worked it until it started up(about 20-30 seconds). He said that it hadn't been started in two weeks. It idled rough for a little while and then smoothed out with a pretty high idle. Immediately after the car was started, it began to smoke(quite a bit). He said that there was a bad seal on the transmission, and the tranny fluid was burning on the exhaust. It smelled like my old 240 when it was leaking tranny fluid, so I think his assessment was correct. I did not drive the car.

The seller is selling this car for a friend, and is has been advertised since September. He is asking $1500 USD. He is not a Volvo guy, but seemed know a bit about car repair. I want to make him an offer on this car(after I give it a drive), so any advice will be greatly welcomed.