There are so dreamers out there, when I bought my R32 I offered a guy 48K for his, he had it advertised for $50k. He wouldn't budge, 4 months later it was still up there, but he had dropped it to $46. I'd see if you can find similar age/kms Stis and if cheaper use those as leverage to lower the price. But saying that some people think it's their given right to get a discount, he doesn't have to drop the price. So if it's cheapish/fair compared to other cars then pay the $39'950.
EDIT

Having just had a look on carsales and redbook, 39K seems pretty good. There are 07s, with similar kms that cheaper, but they are interstate. So if those 20kms are genuine and the car hasn't been drilled I'd go for it. The fact that someone saw him accelerate hard from the lights once, or that he's changed the price multiple times is pretty much irrelevant. But if it's spent most of it's life on a track, then that could be a concern.

Thanks for the comment Jaimie I had a look on redbook and carsales just then and for that model the price should be somewhere between $35k to $39k with 45k to 75k on the clock. Looking at those figures and how much the car has done so far and the way it was driven i think it makes this a very good buy!! Surly you can find something cheaper from over east but they most likely thrashed or high ks and the cost bringing them here is going to cost at least $2k. I had a chat to him on Monday and I told him how much i can afford to pay ($38K) and he told me he has other people interested in it and he is getting sms and email from a lot of people! For example he said there is this guy that coming around this week from Melbourne to come and see it...!! I mean it’s been on there for more than 6 months now and suddenly there is lots of interest amongst buyers and they are some willing to come down from interstates!! Confusing realy

all this stress for a subaru?, there are heaps out there mate take your time don't rush and be desperate. If the guy wants to play games fuck him he can stick the car up his ass

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"Our business here today is cocaine, yes? "

alot of people say this to get you to act quickly. take your time and find something you like that within your price range.

I doubt anyone would come from Melbourne. Prices are usually cheeper over east.

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Stoner & Webber 2011 World Champions

not sure wat ur waiting for?!
if its an 06 sti u want....this one is a bargain!!!
ur not going to find one with kms as low at this -especially at this price!!!!!
even in the eastern states!

the engine in these cars are bullet proof! Plus, it's not like he would redline at every traffic lights!

a simple answer is for you to spend $50...bring it to a workshop and get a compression test done..if all 4 cylinders are in good nick, u reali cant go wrong at that price!

If u want to spend $38...go buy one with 70K kms on the clock.

I sold my '06 STi with around 65k on the clock for 32.5k (stock apart from interior and zorst) There is plenty crack pipe prices around if you're willing to pay.. but no one will get what they want in this climate so u might as well low ball em!

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MY00 GT Forester with STi goodies

In almost all cases, the first legitimate offer is the best one.

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www.racewars.com.au

my younger brother's friend went to have a look at this,

you are right, its owned by a mid life crisis dude, who's wife is wishing that he got rid of it. He's a pedantic prick but the only thing he could fault were a few scratches on the front bumper.

back when he was looking at it (2 months ago), he was advertising for $42k, friend asked him for $41.5 but only to have the seller say no. a week later seller called saying that he'd take the offer, but friend already crossed over to the dark side. Friend actually wanted this but only had $40k to play with, but like said before, it is a nice car, so thus was willing to stretch.

At this price though, its definitely worth it, even if you cant bargain. only thing that comes close, is a reshell.

Just choose which way you want to swing. thats it