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As I've said ad nauseum, there's a floor where a car can just get wholesaled out. A 996 turbo (or non-widebody 993) isn't even under consideration. Might as well pitch him a Boxster...... I think ultimately this particular car is in the zone where someone will pay too much relative to what it's worth merely because the purchaser: 1. wants a 993 turbo, and 2. that's all the money he has to get his foot in the door. See it all the time.
If you can repair whatever is wrong with the car for the cost of the parts then buying one that is discounted because of some issues that would cost someone else a lot more to fix makes some sense.
It also depends, as you have said, how picky you are. a 97 turbo with needs would cost most people a lot of money to keep up. If you have the time and enjoy spending it on the car, then it can work. Bying a really cheap turbo is probably not going to be really cheap in the end. Your time is worth something.
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