I don't think you're being unreasonable at all. But my advice would be DON'T BUY THAT CAR FROM THAT GUY!!!!! DON'T DO IT!!!!! Just back out now. Take the ding on your ebay feedback or whatever, but don't close the deal.
The offer of a $1K price reduction was more than generous in my opinion.
There are plenty of other cars out there, so maybe you should just wait for the right one to come along. Skip this deal.