I found an 89 Prelude Si recently, but I was informed that the car is leaking coolant and burning some oil.

They are "unaware" of what is causing the problems, but they believe there may be an issue with the head gasket or a leak in the radiator. Should I take the risk on the car? What would be the worst case scenario with the issues?

 

Worst case, a new engine. If the head gasket is going, it could have overheated, and warped the head or damaged the block. If you can, get the engine compression tested. It will probably have at least one low cylinder and need a head gasket. While the head is off, it can be checked by a machine shop, to see if it has warped or not.

If the car is a good deal, why not? I dunno where you are, but I wouldn't pay over 500 bucks for a 3rd gen lude with a possible head gasket issue, unless the rest of the car was mint.

 

I'm located in Vermont, the car is in NH.

I found it on Craigslist for $500, but I think I'm going to pass.

I just talked to my Mom, and I decided to inherit her 2006 Mercury Milan for $5,000, which I'm going to try to turn around and sell for $8-9,000 and buy a 2004-2006 Civic, or a 3rd Gen Prelude in Mint condition, or, a 91-92 Integra in mint condition, and use the rest of the money as a project fund.

 

lol....i think its a good deal if it clean inside and out. Straight body. If not then i wouldnt get it.