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But what I'm wondering is why the car is so cheap? For 280 dollars it must not even run! There must be something seriously wrong with it.
That is likely wrong. The Japanese treat their cars very well (I had a friend who visited Japan, he told me all the cars looked like they were from a showroom). This car probably does not have a safety certificate in Japan (http://en.wikipedia.org/wiki/Motor-vehicle_inspection_(Japan)), which is why it is so cheap. Getting one is very expensive, and thus not worth it for a car this old.