I owned one of these for a year, got hooked and changed it for a MK3, which doesnt handle as well, but is a better all round car.
Common issues are:
Rust. Check that the roof drain holes are clear (behind the seat belt pillar on both sides, you will need to lower the hood), and each of the pair of holes at each jacking point on the sill (use a cable tie to push through the hole). If water gets into the sill they will rot inside out quickly as the design is flawed and the body panels/sills are not well protected. Any sign of bubbling on the sills or rear arches get it seen to quickly (it is structural and if a MOT tester can push through the sill is will fail an MOT). You can cover it cosmetically but it will return in 6-12 months. With the sills and arches its not if but when, they all suffer (MK1 to Mk2.5).
Misfire. Often on one cylinder (plug or lead, cheap) or two (coil pack on the back of the engine, expensive). Dont drive it in this state, they run rich anyway and it will foul the cat (expensive on this car as it is part of the mid-pipe).
Geometry. A proper setup is a must, if you think the handling is good now it will be far better after a set up. The suspension is double wishbone all round so find somewhere with a Hunter machine (not your local tyre fitters). Wheels in Motion have the best reputation.
Do not be tempted to change the dampers or fit massive wheels and low profile tyres without consulting reccomended sus/geo specialist, you will ruin the handling, 14" and 15" wheels work best. It is not a FWD hatch, handling does not equal grip alone. The best wheels are the 15" off the 98-00 iS, they are very light for OEM.
Oil is 10/40 semi and they benefit from regular changes. Engine is NI, but belts should be done every 54k miles, easy job as access is excellent. Brakes can suffer with lack of use, they either seize (brake imbalance will fail an MOT) or they are slow on/off (strip down and re-grease solves). Fuel consumption is never really better than mid 30's.
Those who say they lack power are missing the point, a run on a decent road with the hood down cannot be bettered. Dont bother changing anything that isnt broken, spend the money on fuel and enjoy driving it. £1300 is a good price, i p/xed my 00 iS during the summer for £2.7k, they never really drop below £1k with 6 months plus MOT.
Tyres: Goodyear GSD3 if you can get them, or Toyo T-1R.
Enjoy.
