I just looked at a nice 91 740 non-turbo, 150,000 miles. Excellent service records. Interior in very nice shape, no cracks or broken bits. Exterior very good. Drives very nicely. Asking price $1400 US. Several people were lined up to look at it after me so I gave the seller a $100 deposit, and deal will close later this week. Things that he indicated need to be done to the car: front disks, and exhaust system (including cat. converter). Will need emissions testing.

The mechanic that has worked on this car for several years recently pointed out to the seller what looks like a coolant leak on the front right part of the block. The water pump was replaced 20,000 miles ago, but when I looked at it, the leak didn't seem to come from there, more from the head gasket area, and the block is wet beneath it.

I like the car it's in very nice shape, and want to buy it, but now I'm seriously concerned about the coolant leak. I have read some posts about it, and it doesn't sound like a cheap fix (head gasket - if indeed it's the head gasket's that leaking).

I will call the mechanic tomorrow to get his opinion.

Should I back out of this deal? Or take a chance and move forward to closure?