Funny, one of our forum members, who, strangely enough, has not posted in a while, said that Peugeots are a "dime a dozen" in the New York area. Anyway, one never seems to have a grain of salt when one needs one...
It would not surprise me to see the bike sell for close to what the seller is asking. I would be interested to know. As for the problems noted, they might not be that big of a deal. Something a little lubrication and tuning might be all that it required. That said...
I agree - get the seller to do the tune-up for the price asked. Nothing to loose by asking and, if the Peugeot is then in sound working condition, the price is fair, in my opinion.
Pic assist...