Buy or Walk Away?

I came across a new listing for a 2006 Corolla with 136K miles at a used dealership for $6K in Southern CA. Carfax reports it as 1 owner. The pictures online looked good, but in person, you can see the paint is coming off in some places and it has some minor damage on the front bumper (driver side) which they disclosed. Minor accident reported to car fax. Other than that, it looks pretty good and the interior is pretty clean. On the test drive, I noticed a "thud" on pressing the gas here and there, but other than that, seemed to run and shift well. All fluids looked good except for power steering, which may need to be serviced.

The dealership had just smogged it and said they did the smog themselves. In the BAR smog test history, it was "not ready" on 4/30 and then passed on 05/05. EVAP monitor still hasn't set but all other monitors have set.

They let me take it to a mechanic shop of my choice in the area. The mechanic said it's a decent car overall, but he noted the following:

--weak motor mounts, will need replacement (this is probably the "thud" I was feeling from time to time on the test drive)

--swaybar links need to be replaced

--passenger side CV boot torn, needs replacement

--rear shocks need replacement

--power steering service recommended

--body damage noted as minor/ primarily cosmetic.

--he also noted the catalytic converter has been replaced at some point.

The mechanic recommended I take off $1,300 from the asking price, and you will probably not be surprised to learn that the dealership rejected that and told me the price is firm. I thanked them for their time and walked out, and texted them soon after letting them know I am willing to pay more, but I do need to take some money off the asking price to fix some of these items. They responded that they could take off $200 and no more. I will verify, but I don't believe this includes dealership fees. It has been tough to find something decent in the lower price range - would you consider this still, or would you keep looking?