Things you WANT to see:
* lower mileage...the lower the mileage....the less wear & tear the car has seen. These cars tend last longer than other cars though...if not abused. Generally you want to see under 200K miles...somewhere around 100K is a major find.
* previous owners....it is a good thing if the previous owners were adults who didn't like to street race or run the boonies...it does make a difference.
* lack of RUST....drivetrain components can be repaired or replaced as needed....major body rust can take a lot of work to stop...let alone repair.
* no serious accident damage.
* clean interior...more important to some than to others.
* good glass...takes some effort & $ to replace.
* good mechanical condition.
Checkpoints:
Body...exterior....
* check for any bent bumpers or sheetmetal....bumper damage CAN mean frame damage..best to look under to check for crumpled frame ends. Front fenders or front/rear doors can be replaced...sheet metal damage behind the rear doors is more difficult to repair.
* Sometimes a car will have an accident where a front wheel takes most of the impact...this can bend the frame or suspension components...usually resulting in steering problems.
* look for RUST....most likely is around the edge of the front wheel opening...rocker panels under the doors...lower edges of doors and hatches...usually if you can see any paint bubbling or actual rust..there is more damage there than meets the eye.
At times the car has been repainted below the beltline to "fix" a rust problem....using bondo...which usually doesn't last so well. You can use a magnet to test for bondoed areas...if it won't stick...it's bondo. Nothing wrong with bondo though.... if it doesn't bubble or crack.
* check the glass condition...usually the windshield will most likely have issues.... wiper scratches or stars.
* make sure all the doors/hatch/hood open & close OK. Do they lock OK?
* tires OK?
Interior....
* look for seats & carpet in good condition....door trim OK? dash in good condition?
* do the windows roll up & down?
* does the radio work?
* does the heater and/or AC work? If you smeel antifreeze (a sweet smell) when driving the car with the heater on or off...it could be a leaking heater core.
* turn signals and lights?
* speedometer & gauges work?
Mechanical....
* try to test the car when it is cold...be suspicious if the car is warmed up when you first see it....ask them not to warm it up.
* pull the dipstick to check the oil (front of engine)...a milky appearance or green droplets probably means coolant in the oil...head gasket....dirty oil means it needs to be changed.
* first thing is to start the car up cold...remove the radiator cap and look for bubbles...bubbles mean a leaking head gasket or head. Also check for any oil in the coolant....though some kinds of stop leak (the pellet type) have oil in them. If you see a kind of brownish sludge in the overflow tank...this can mean stopleak was added.
* then warm the car up and see how easy it starts and runs. Look for coolant leaks around the engine.
* when it is warmed up (temp needle in the middle)...try reving it up some using the arm at the carb...listen for any loud engine noises other than the valves...could be a rod bearing...main bearing...piston slap.
* then try to get a view of the exhaust on a non-windy day...rev the car up...usually from the driver's seat...hope you don't see blue smoke...meaning oil burning.
You might not see any significant oil smoke, but the car still might burn some oil... 1-2-3K miles per quart?
Under the car....
* look for oil leaks under the engine....you will see some oil staining...you really don't want to see oil drips...could be loose pan bolts or could be oil seals...more of a problem. Could be the valve cover gasket which usually allows oil to leak down the driver's side of the engine.
* look for oil leaks where the drive shafts exit the trans/differentials...stains OK...drips are a problem. You can also try moving these shafts where they come out to see if there is any looseness. You'll likely find some where the front axles exit the differential....the rear driveshaft shouldn't have much if any slop at all at the trans or back at the diff.
* if you can get the car up on a rack...best to pull the back filler plug and be sure the trans has a reasonable amount of oil in it. Need to loosen the rear drain plug 7-8 turns to do this right. Sometimes people forget to check the gear oil...let alone change it now and then.
Also you could pull the middle drain plug to check for metal particles...you'd want to see ONLY very fine stuff. Careful...this could get messy if you can't plug the hole while looking at the plug magnet.

* look for any serious frame damage from rocks...or frame rust...usually rocker panels or the cross frame in front of the gas tank? Front floor pans?
* is the exhaust OK?
Steering....
* check for excessive steering wheel play...shouldn't be much
* drive the car slowly over a rough surface like a lawn or gravel road...listen for clicking noises from the front...can be sloppy inner and/or outer tierod ends.
Testing on the road....
* check the brakes...does the car stop straight with no pulling to one side or grinding noises?
* does the car accelerate pretty well for a 1.5L engine? Look thru the rearview mirror for that tell tale blue smoke....
* no clunking or other odd noises over bumps?
* a lot of whirring noise at the back might be rear wheel bearings.
* does the car shift thru the gears OK...clutch operates OK...no grabbing...no slipping?
* try putting the car in 4WD and test it on and off road some....you are not looking to do a Baja run...just make sure the 4WD works OK and you can shift it OK. I don't recommend using the 4WD on hard pavement.
You do need to understand the nature of this 4WD setup...if it is in 4WD and you turn the car on hard ground...you won't be able to get it out of 4WD....until you turn it back the other way while driving it...to loosen driveline tension.
* do you notice vibrations or noises in 2WD when turning the car and accelerating....might have front axle problems.
Conclusion......no car will be perfect...some have just been neglected and will be fairly easy to get up to par....some will be in more serious condition.
Any verifiable problems you find might help you get the asking price down some.
Whether you buy the car might depend on whether you intend to do any repair work yourself...or pay someone to do it.
Since these cars are relatively hard to find...you might have to just work with what you have available.