Okay, what's a "malibu"?
That poor thing hurts my eyes; you'd be really limited in the usable parts that you could get out of it, but I must say the seats *do* look nice. I'd go elsewhere for the carpet (aftermarketers on eBay), though; the previous owner clearly didn't bother keeping it clean, so I'd bet the carpet is trashed in places.
To say that it's a project or a beater is being far too kind...that rust would fail it in any state.
$500 is a good upper limit for that car. Good seats, *maybe* a good engine, and very little else.
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Dad's 1992 325iC