1986 Subaru GL or DL questions for a guru

[wohnson89]

I'm looking to get a beater that I don't have to worry about parking dings and keying idiots. Among other things I found a 86 dl or gl sedan (seller doesn't say what it is). It's got a 4speed, awd, and only 120K miles. Since I've never owned a "classic" Subaru, and there seems to be quite a few of you here that have, I have a few questions:

-What kind of millage do these get? The seller claims a magical 40 MPG!!!11!1
-Does the trans hold up ok?
-What are some things to watch out for?
-I know they are not thunderbolts, but how good or bad are the engines? Can they reach highway speed? (80 round these parts)
-What do you think would be a fair price?

Attached pic is of the car.

Thanks in advance.