I would buy it! But I probably don't live by you.
In order to sell it for the price YOU want it, you need to do everything you can. Put it in the newspaper, post it on used car selling internet sites, put it in the driveway and put a for sale sign in it, put a picture of it on google images saying for sale, you can do many many things, not just craigslist.
Though, if you want to sell it super fast you may need to lower the price. Most people who would buy it wouldn't like exaust, and a lowered car. I would atleast lower it to 5,000$, if it doesn't sell by a month, lower it to 4,500$. Or maybe just wait to sell it until graduation, because then people get their licenses, and can drive. And they are going to try to look for a decent car. I don't know about you but I wouldn't like to be stuck with a freakin' 1930's car.
Good luck!