Matt I don't think you should feel bad trying to knock the price down a bit. If you can't afford 5k tell him. Your being honest, you want to restore it, not wreck it so it is going to a good home. The truck looks great, I don't think you will regret buying it.  
I don't think an offer of 3k is rude. You can always go up if he says no.
		 
		
		
		
		
		
		
			
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