According to Edmunds, Ian got an very good deal!
They have trade in value here for that car (and I LOADED it with everything except an ATX, and gave it "average" condition due to the need for same repairs).
Trade in $3465
Private Sale $4310
Dealer Retail $5349
If I improve the condition to "clean", which would account for the work being done...
Trade in $3953
Private Sale $4913
Retail $6062
Keep in mind I gave the car every option in the book (leather, CD, moonroof, power seat...) and he still got trade in value if the work was already done.
They gave him $4,000, will do the work, and it looks like they should be able to get about $6,000 for it.
Sounds about right to me. I just hope you took my advice to sit in it for a while to make sure you find it comfortable.