chakub

I don't know much about Road bikes and I don't want spend more than $130. So far I found $125 Peugeot UO-8
Size from middle of bottom bracket to top of seat post is 24". 27" x 1 1/4" wheels/ newer tires (IHC Hp 90). Mafac brakes and levers. Simplex derailers and levers (rear is prestige) and new shifter cables. Rigida Chrolux wheels with quick release hubs (M.M. Atom).
I will be delighted hear from you
Here some pictures

huerro

The main thing to do is to inspect it carefully and make sure that you won't need to spend more money on it in the future. Are the tires and brake pads in good condition? Do all the bearings spin nicely? How are the cables? the chain?

If it is in great shape, ready to ride, and fits you, $125 doesn't seem crazy though it's by no means a steal. I would try and talk the seller down, especially if it needs anything to get on the road. I would say it's pretty much certain that you will be able to find a better bike for that price, but it might take a good long time. The question then becomes how much is it worth to you to have this bike today and be riding it for the next month instead of looking at craig's list. If you have other bikes to ride, the "now" number wil probably be a little lower. None of us can tell you what that number is for you.

If you have a little money in the bank, this "now" figure can go a little higher. If something better comes along or you end up not loving it, put this UO8 back on Craig's List and get the better bike. The nice thing about vintage bikes is that they've already done their depreciating. As long as you haven't damaged it, you should be able to sell it for about what you bought it for. A new bike loses lots of it's value the moment you walk out the door, this one has already lost about all the value it's going to lose. (Although I know money can be tight and you might not be able to afford to have another $125 in bike form that you're waiting to sell)

trhouse

Look carefully at the rear derailleur pulleys. In 8 of 10 of this vintage, some teeth have broken off in my experience.

Chief&Champ

I purchased a '77 for 60$, but it has some aesthetic issues. Rides great.

As Huerro mentioned, if it's in perfect condition both aesthetically and mechanically, 125$ wouldnt be too bad. There are better deals out there, but not likely on CL.

chakub

Thanks for all your considaration, I will look up to all you told me.

wrk101

If it fits, go for it. I have a 75 U08 and a 73 A08. They are bottom end bikes for Peugeot but much lighter, than similar Schwinns from that era.

I upgraded my rims, crank, handlebars, and seat post to alloy. My next upgrade is to install aero levers to replace the goofy turkey wings. That will be all I do to it.

The Simplex rear derailleur is a POS, but you can find good used derailleurs on ebay and similar all the time.