2002 S40 -- Buying decision

[jose456891]

I just checked a S40, and its not running due to a possible bad cam position sensor. I need your advice, here is more info:

Asking price: $1000, originally $1250
Description (from owner): Broken Timing belt

My diagnosis:

~150 PSI on all cylinders, timing belt looks good.
Codes:

P0602 Powertrain control module programing malfunction
P0302 Cylinder 2 misfire
P0015 Exhaust Crankshaft position timing over-advanced
P0014 Exhaust Crankshaft position timing over-retarded
P0700 Transmission Fault Lamp Request (>.<)
P0420 Cat. Bank 1 Efficiency Below Threshold
P0352 Ign. Coil Circuit Malfunction

There is some rust on all quarter panels, and the interior is dirty.

I might be able to offer the guy a little more than what the junk yard would pay ~$500

Should I buy it?