Rare or not, $340 for that steaming pile is a ripoff. If you search the word rare on eBay you get some real crap. There's a lot of rare stuff out there that's rare because it sucked a nobody wanted it to start with.
True, he wants $3800 for a car he stripped the interior in, and paid $600 for (stangnet.com/mustang-forums/801555-1987-5-0-coupe-t-tops.html) but it's still a car everyone told me existed but I've never seen.
If it was properly restored it could be worth fair money in a few years, but I agree that $3,800. for that is high. Add in the cost of the restoration and you're talking big money. But maybe someone will jump on it as a potential future investment. If he doesn't get anywhere near $3,800. in bids he might end up trying to sell it for much less. I doubt he wants to hang on to it in the condition it's in.