what ever you decided, there is no way I'd be giving back full price to the kid, no matter how nice he was. Your time and aggravation are worth something, plus now you have to relist, resell or dismantle and part out the car??? He'd be really lucky to get anything back from me.....I look at it like this, if the car was repo'd would GM or the dealer or whoever be giving back any payments he made??? I doubt it.
How seriouse is the frame damage, from the picture it's tough to tell? Is a seam split from sliding over something?? or was the car hit pretty hard?? Either way, a stripper z-28 like that with a solid roof would likely bring a lot of attention from the auto-cross/scca solo crowd over on
www.frrax.com, guys love those kinda stripper cars for class racing, so maybe try listing it over there as well. I just noticed its an automatic...ooops...not as attractive all of the sudden...sorry
Good luck
Chris