Hello!

I am planning to buy 1998 Discovery from local private owner. (St Louis, MO)
I went thru the stickies and whew those are a lot of information but it helped me a lot to understand this car.
I currently own 2009 mazda rx8 and work on it by myself.
So i somewhat have experience with more.... hmm what should i say, attention loving cars haha.

So i was searching craigslist and i found this 1998 discovery near my place (about an hour away) and it is in okay condition.
170k miles 2nd owner, car is from Alaska, current owners seems like nice people but i think they neglected some maintenance.
They had this car for 2 years and recently bought subaru and they decided to sell this car. Used mostly for family trip.
They posted it for sale at 1500 dollars but i haggled it down to 1350 since it obviously had infamous power steering fluid leak and radio problem.

The power steering leak and other small mechanical problems such as driver's power seat and window problem, they do not scare me.
I am more scared about the rust underneath the carpet and chassis.
I checked under the car and did not find any major rust on the frame and along the side skirt area where those mounts are.
It had rust but not like holes and metals flaking off just a surface rust. (hopefully)
(Apparently according to owners, in Alaska they dont use salt to remove ice on the road is it true?)

Other stuff, previous owners sealed the rear sunroof, i checked the perimeter of the rear sunroof (where rails are)
It fortunately did not show any signs of rust. Clean railing and no signs of headliner sagging.
Front sunroof works perfectly and it seals. I think CDL is stuck from lack of use but i haven't really tried yet to shift it so it might work.
Car fires up right away idles at 750~800. Exhaust gas comes out clean, i think head gasket is working correctly.
Some other cosmetic stuff, interior is okay and paint shows its age but overall i think its not in that bad of condition.
Car does have prior salvage title from previous hail storm which was 3 years ago, and i believe it hood and roof had couple noticeable hail dents.
(Indentation diameter about 1 to 1.5 inch)

However...
Unfortunately, I did found out major rust bubble on the passenger rear wheel arch. about a size of tennis ball.
Not the inside of the car but right under that little nipple where door latches on to.
I know this is a major rust spot on discovery, and I am reluctant to buy it just because of this.

My question to you guys is.....
Is this car worth buying for 1300 dollars? I really like the car and i can work on most of the mechanical problem but i never dealt with the rust before.
Since rear wheel arch rust is a common problem is it something that most of discovery people live with? (Like how my rx8 needs special care)
Will it compromise car's integrity to the point where it is unsafe to drive?

I know rust bubble usually only represent tip of the iceberg but other than that spot body is relatively clean.
Could u guys give me more tips on how to detect for rust? Such as how to look under the carpet without damaging carpet? (since its not my car)
And tips on easily spotting major rust spot. Since I can't tear down the car its pretty difficult for me to judge this car's condition.

I am not planning to go on off-roading, Maybe driving on country gravel road sometimes.
Its gonna be a grocery getter and occasional road trip vehicle.

Thank you for helping me out.
Will be waiting for response.