I finally looked over all the photos. There is a lot to like, and a lot that remains to be finished on this car. Engine, transmission, and diff leak all over. Not a great look. The crusty rust on the diff is not a good indicator as to the rest of the car (that is now covered in fresh paint). Pictures before paint would be best, but I doubt the seller has them, or will post them. When was is painted? if 10 years ago... any rust would have resurfaced by now. Idon't see any bubbles...
Ad says "seller notes grinding in 1st gear when starting from a stop" Crunching transmission.... First gear in these old Getrag 4 speeds are not synchronized... perhaps that's what they are having an issue with? The original 4 speed in my 2000CS was like that. Jack Fahuna in LA explained to me what was going on. From then on, I simply slipped it into 3rd gear as I rolled to a stop, then into 1st. That kept it from crunching. Anything further could be something simple as changing fluid and bleeding and adjusting the clutch slave? A replacement 4 speed would be easy to locate, dropping in a 5 speed is also a simple affair.
Interior? I'm not sure you could ask for better in an original car. The dash is almost perfect.
Engine bay looks unmolested with what appears to be a new fuel pump and new fuel line from pump to carbs...except, NO CLAMPS on the fuel lines of the high pressure side and a plastic T fitting... that's crap. (as Chris pointed out... the fuel line from firewall to pump is original and SHOULD have been replaced with the pump) That kinda shoddy workmanship will be tell-tale to any other work that has been done on the car.
Small stuff: Fuse box cover is in good shape... that piece is unobtanium. The VW fuse cover will "fit" but the numbers are backwards.
It needs a thorough degreasing underneath and all the mechanical stuff gone through. It needs an exhaust hanger from the back of the transmission. I'd like to see some compression #s on the engine.
It looks like a good driver and may give you many years of enjoyment. My guess is it stays under $25K because of the unknown rust issues and the general greasiness of the undercarriage. (seriously... 1/2 day of pressure washing and a quick wire brush to the crusty bits would have gone a long way to getting a higher bid). Perhaps they are being honest about the condition? Who really knows, but we'll find out tomorrow.
Ed Z