...sounds like you might be OK...the single owner sounds more comfy. I'd sure like to get that in writing from them. So let's assume that you're OK depending on the orig sale you could see how much time you have left. Basically covers the important hybrid battery and other parts. that in mind, if it qualifies the price seems OK. Transaxle fluid needs changed immediately on these if not done already. Gen2 seems like they needed new fluid sooner than the manual. What's failing fairly fast these days is the Gen2 batts especially *seems* like 2006 a little worse. But of you're CARB you've got some nice protection over us non-CARB slacker states.
Get what you want the most. Listen, before my Prius, I owned a 2010 Honda Fit, and I loved it. Great vehicle. Enjoyed the 3 years I had it. Would highly recommend the choice to anyone who was primarily or singularly looking for a regular ICE sub-compact. BUT...if you love the Prius? Get a Prius. Transaxle failure or any mechanical failure shouldn't be a fear any larger than the risk of mechanical failure that exists with any and all machines. I would say that BOTH The Prius and Honda Fit are well built and reliable. There are advantages to both vehicles. I could write a lot more. But in short I'd say, Honda Fit: The proverbial "Fun To Drive" factor. It was like a little race car. Incredible Utility for it's size. Decent/Good gas mileage for a regular ICE sub-compact. Has both the advantages of being a sub-compact and the disadvantages. Prius: Gas Mileage trumps almost anything else (standard vehicles) on the road. Also has good utility. IMO more comfortable, quite and smooth...which makes it a great road trip vehicle. It's kind of a cop out, but I would say either vehicle is a good choice. But if you are in love with "The Prius" then don't NOT get it because of any fear of premature transaxle failure.