There are usualy quite a few savages/s-40's for sale, use both terms when searching.  Yor budget will be a major factor, but I suspect that for about 1K more, you can find a low milage example.  At 34K miles, the famous chain issue raises it's head; and the blue smoke suggests a valve job might be coming your way.  I'll let the real mechanics chime in..good luck on you decison.

Leave it alone, there is a real good chance it will become a money pit. Way too much to pay for that high a milage savage.

hdblueangel wrote on 05/15/08 at 04:32:02:
I picked up my '00 in '04 for $2,325 -- clean, 5K miles, needed rear tire and battery.  For a kilobuck more you can have a bike without major headaches.

For that '97, I'd offer them "$700 now, or in six months when you're tired of looking at it."  (Hey, it worked with my TLR200!  Gardena Honda had the first one in the SouthBay -- I told the sellsman I'll wait a couple of months and take it for $200 of MSRP.  So he let me have it then at $200 off.)

34,000 miles. Store is asking $1,400.  Not great
The mechanic rode it, after they recharged the battery.   Not good
Smoke came out of the exhaust when it first started up,  Not good
Tires look good, all the lights and signals work.   Expected
Has a couple of dents in the tank, seat is torn in a couple of places.  a little rust around the windshield and mirrors. Not good

Should I buy this if I don't know how to fix motorcycle?   Not unless you want to learn
Anything else I should ask about the engine?  open up the clutch cover and look at the cam chain (see tech sect)

I bought my '96 about 2 years ago for about $1200 started with 16k miles, now 30k.  No dents.  I have a basic knowledge of twisting wrenches.  No knowledge of motorcycles.  Check my sig, those are all the mod's I've done.

To me, the way that you explain it, they got the bike, it's been sitting long enough to drain the battery, haven't done any work on it or expect too.  As paladin says, low ball it and walk.  You definitely can find a better deal for you.  If you're not looking to do any repairs, then get a fairly new bike with less that 5k miles.  Miles more important the years.  And unless you're rich or totally incapable of twisting a wrench, expect to learn how to maintain your bike.  This is a great bike to learn on.  And we're here to help.  

I guess what I wanted to say is that this shop bought a used bike and they want to turn it around and make a quick buck.  Probably w/o any warranty of any kind.  They'll wait untill you come back with a gleam in their eye.  You're in control right now, don't give it up to easily.

Other choice would be to low ball them.  Offer $750 and see if they nibble.  

IMO that's more the price it's worth.

Yeah, my first thought about that bike was that you'd offer a private owner about $500.  Look on Craigslist, eBay Motors, and Cycle World.