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Screw the fact that the car has 96K. Without some records to prove that mileage, assume that it has 200K. Instrument clusters are a 10 minute swap.
I have not read the other predictions, but I saw a 87 wagon on a lot this summer. 98K, perfect interior, minor fading on the exterior, but no dings or scratches. I did not drive the car, it had an auto so I was not interested. But a close inspection revealed that the suspension was in next to new condition and there was NO rust. The car had a tiny leak out of the rear main, so small I dont think I would have fixed it. Price: 3800 bucks. The dealer was out to lunch, but I practically sold the damn thing to an older couple on the lot. They were looking at a Saturn, yuck. I pointed out the paint and the rear seal and told them to offer 3K.
You can see where this is going. I would not pay much more than 2500 for this car from your description.
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