I'd consider buying it if I didn't have my Valiant. When you add up the cost of a resto, $8K pales in comparison. I guess you'd just have to be reasonably certain you're not buying something that's a basket case with nice paint. Doesn't seem like it to me, maybe I'm naive? When was the last time you saw a Demon in presumably good shape that was reasonably priced?
Let's say you found a car and it was cheap but 'needed work'. I can't imagine a dun-rite paint job costing less than $5K, plus the initial purchase of a decent body which could be anywhere between 2,500 and 4,000. A new interior for that car would set you back plenty too. IMO you'd be WAY over 8 before you started. If you were willing to accept it as is, you'd be ahead of the game. You're better off just paying a little more at the start and making it how you want it. Again, maybe I'm naive, but I think it's an OK deal. I bet the reserve is $7,500.
I think you'd have a bitchin' car for around $15K with a new driveline.