How much is a 96 going for these days? The car is 22 years old, I’m guessing that’s why he can’t get financed (among other things). Glad you decided against it OP!
I sold my sport bike for $2k. Guy gave me $1K down. I took the title with him and put myself on as a lienholder and kept the title. I kept a set of keys and got a copy of his license. He make $100 a week payments to me until it was paid in full.
Got final payment, met him at a title place and removed myself from lien holder.
On a more expensive vehicle? Only if the cash down is significant.