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4000Q questions

I was looking at a '87 4000 quattro yesterday and have a couple of
The car has about 120kmiles on it. The engine pulls strong but there is
a noise from the exhaust manifold, as if it is cracked or the gasket
blown. Is that common, and how much repair cost am I looking at?
The two led lights lit up when the diff lock was switched, does that mean
that it is operational, or that is just the lights attached to the
switch? How are the diff locks actuated, electrically, hydraulically?
Does that car has the high pressure hydraulics as in a 5000, or regular
power steering and power brakes? The brakes looked kind of funny, it had
two master cylinders in tandem, one above the other, attached to drum that
looked like a vacuum booster, any comment on that?
Three door handles out of the four needs replacement, and the inside
mirror has fallen of the windshield. The radio is deaf, it probably
needs reporgramming, it is the infamous VW/Audi Autobahn 200 radio.
Either the power locks or the remote mirrors did not work, that was
mentioned, but I have not checked. The AC seemed to be working.
Body was in fair shape, a couple of surface rust spots, chipped paint
on the front, and the light lenses cracked/broken in the front bumper.
Rotors, brake pads, bushings (not sure which ones), alternator, muffler
was replaced recently. Anything else about to go at a mileage like that?

The owner wants about U$2.9K, he was told by the dealer, that that is
the value of the car in Canada, but these cars do not sell because of
the high maintenace cost.

Any comment on the above? Should I steer clear of the car?

Thanks for your help, Peter
Peter Orban
National Research Council of Canada
Internet: orban@nrcamt.nrc.ca