STYLETHREAD -- LET'S TALK SHOP!

That sounds like the perfect price for that car, year, and mileage, provided the car is in good working condition.  Toyotas are good cars.  My first car was a Toyota.  It was 10 years old and NEVER needed any work done.  It was the best car ever.  If some crazy bitch didn't ram her car into the side of it and total it, I might have even still had it today. 

I also don't think that your co-worker would let you buy a car that doesn't work well knowing she will have to see you every day.  I say go for it!

I'd have a mechanic check it out first, just to make sure it's in good condition. Also check out carmax or bluebook online for prices of similar cars, to make a good comparison. Otherwise, seems pretty cheap but sometimes you get what you pay for, ya know? An informed buyer = a happy buyer.

do some research on car selling websites to see the going rate for that car w/ similar mileage.  but one thing i gotta say is it isn't really the best idea to do business w/ people u know.  it can end pretty badly & personally i try to avoid that situation.  but if u decide to go for it, then good luck (literally, not sarcastically)!