Certainly is not too far gone, HOWEVER:
This level of rot on a standard saloon would make it a serious project. I've done similar and much worse on saloons and LCV's (never wanted a convertible) and it's not to be taken lightly.
As this is a convertible, you REALLY need to do things carefully and orderly in order to replace the sills without having a bent shell.
If you can get one of the minor specialists to do the sills (and the floor edges - or maybe it may need full floors) this is the serious stuff dealt with. The other areas are much less critical. Some of the Minor specialists can offer really good prices for floor and sills and do a decent job. Some are better than others for quality and price - more expensive does not always give a better job either so make sure you are well informed.
If you plan to DIY the entire car then if I was you I'd buy a saloon neeeding a bit less work to start on. Then only do the convertible with a bit more experience - this is just advice, and can be taken however you want!
*Day two* I think i have made a mistake i think
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Ray. MMOC#47368. Forum moderator.
Jan 06: The Minor SII Africa adventure: http://www.minor-detour.com
Oct 06: back from Dresden with my Trabant 601 Kombi
Jan 07: back from a month thru North Africa (via Timbuktu) in a S3 Landy
June 07 - back from Zwickau Trabi Treffen
Aug 07 & Aug 08 - back from the Lands End to Orkney in 71 pickup
Sept 2010 - finally gave up breaking down in a SII Landy...
where to break down next?
2013... managed to seize my 1275 just by driving it round the block
Jan 06: The Minor SII Africa adventure: http://www.minor-detour.com
Oct 06: back from Dresden with my Trabant 601 Kombi
Jan 07: back from a month thru North Africa (via Timbuktu) in a S3 Landy
June 07 - back from Zwickau Trabi Treffen
Aug 07 & Aug 08 - back from the Lands End to Orkney in 71 pickup
Sept 2010 - finally gave up breaking down in a SII Landy...
where to break down next?
2013... managed to seize my 1275 just by driving it round the block

Your car is going to need a fair bit of welding - but it's perfectly fixable. Don't go taking too much off at the one time - weld up one part, and re-assemble that part before moving on. The price you paid is fine - especially as it indeed seems to be a genuine convertible, although professionally done 'chop tops' are fine too, but genuine cars will always attract better price valuation.



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I hate people sticking thier nose in, i remember when i was moving the 924 from the front garage, to the garage at the back of the garden (which involved pushing it round the block) and some dude stopped me dead to tell me 924's are sh!t and i should have got a tr7!!! i had to poit out that A) 924s have better build quality, B) theyre faster C) theyre much prettier! well, except from the back where theyre near identical to a renualt fuego. and it was and is the fastest selling porsche ever. i nearly ran him over, very slowly.
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conv
I cant add much to this as everyone has said it all, that bloke had sussed that you have a genuine convertible there and he wanted it for nothing to make a profit on. Your car does not look too bad by far, my saloon is no better thats for sure, dont lose heart and do it, believe me it will be worth the effort.