Tough call - I don't think it is "worth" that much, but the way the market is, I don't doubt for a second that it will be sold for that. I got my 97 N/A with 60k for $14k. It was a theft recovery so it had a salvage title, but no accidents and VERY good shape...
If it is in good condition, go for it. You could put a new engine in for $3000 including labor if you had to...
Yeah, I agree with Frankenstein, if the motor goes out, you can get a new or rebuilt one on the cheap (probably less than the $3k he says though... I've seen 2JZ-GTE's for less than that!)
Another nice thing to remember is that the 2JZ-GE's are still used in current Lexus models! So the engine has a lot of future still.
And another thing to remember... Toyota knows how to build an engine! The last Supra I had, an 1985 NA, had nearly 300K miles on it when I sold it to get my current 1995 model, and that old MKII was still running STRONG!
I'd say go for it. Try to talk the guy down in price of course... but if the car's in good condition, straight frame, etc... get it.
I agree, try to work the owner down. Have you test driven it? A fresh, Japanese spec engine swap could be a good investment if you plan to keep the car. Check www.toysport.com engine notes. You might be able to get a vvTi unit!
Somebody posted a Carfax request for a VIN & got response from a member. Why not rty it with this one? If the theft recovery is the only reason for the salvage title, you might have something there The insurance is another story though So what. If the car is otherwise sound, drve a bitchin' ride & be covered to protect yourself!