To me, 800 does sound about the right ball park for scrap price plus a bit of labor. He's probably not being unreasonable.
I'd guess he probably paid out between 6-700. I'd talk to him a bit see if you can warm him up to the idea of saving a peice of history, but the highest you could possibly go is 700.
Then when he doesn't accept, give him the 800 and save that poor thing!
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