With regards to the price, having just spent a few months myself looking for a Defender, and given that you can probably negotiate down a bit, I don't think he's asking too much. Providing of course it is in good condition and doesn't require any costly work.
That being said, if you're prepared to wait something similar may come up at a slightly reduced price, or perhaps with some extra's this one doesn't have (bullbar, snorkle etc).
Cheers
Sean



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