When buying any used car it is wise to consider mileage and reputation versus the price asked. You don't provide the mileage on the car, so we are left with recommending on reputation. Given that the car is 11 years old it probably has well over 100K miles on it. $2900 seems about $1000 more than I would pay for this car. They do not have a great reputation. I owned a '96 that I bought for $750 4 years ago. It had a lot of miles on it but a newer low mileage engine. It lasted two years before the transmission gave out. The last week I ran it the fuel pump gave up. It went to the junkyard shortly thereafter. I had a lot of rust issues with it and the front end was a source of problems. It was comfortable and very very roomy, it was also great on gas (I had the small 2,0L 4 cylinder and 5 speed manual transmission). When all is said and done, I made out OK, I got my money's worth from it and definitely paid no more than it was worth.
The fact that you have already picked up on some issues again tells me that $2900 is way too much for the car. The brake grinding noise could be from just sitting around too long, but if not there is possibly a $250 brake job just around the corner. The clicking noise could be a bad CV joint or worn out wheel bearing - either one could mean $100's in repair costs.
Try Craig's list and see what you can find in your area for $2500 - you will be amazed at the good deals you can find privately. Case in point, I am buying a 1991 Dodge Shadow convertible from a private sale for $600. The car has AC and a new top and 83K miles on it. It looks and runs well although it needs a new alternator ($150) installed before I can drive it home. So for $750 I will end up with a nice low mileage car that will last me for at least 2-3 years with a little maintenance. The engine is the trusty and reliable MOPAR 2.5L engine and it will get great gas mileage.
