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These cars dont have t5s, for a mod motor to have a rod knock or even a head noise with that low of miles usually means t was either severly neglected, or severly abused. Do u have any pics of the car? If the rest of the car was cherry if say 4k is good, but if it looks like and average worn and torn daily driver id keep looking.
Try to get it a little cheaper, but take it. If you can fix it cheap, fix it, otherwise find a complete engine and swap it. Either way you should come out ahead.
The car is clean. I think I'm taking the deal and hope for the best. I just got done with a motor swap and not really looking for another. If worse comes to worse I will prob put it back on the market.