The last four cars I bought for my Mrs were write offs. Three were Cat Cs under three years of age and one, the latest one is a Cat N (used to be Cat D) but is six years old. All of these were under 40k miles and some as low as 1k miles. None of them had any other structural damage than a bent front bumper support. They needed wing or two, bonnets, head lights, some needed rads. One needed just a wing and a headlamp (obv the Cat N). I kept all of them for two or more years. Depending on the car I did between 10 and 30k miles in that time. I had them tracked after each repair, they came up perfectly straight, no unusual tyre wear etc. Always got close to 100% of my money back what I see as a great result. Yes 8/10 people will turn their noses on these but if you have a good add, good maintenance history and if you have kept it for long enough after the repair - it will sell. I normally list my cars at -20% price level of a non Cat vehicle. Sites like Copart can be a good source but here you are on your own. Good sellers on ebay with good feedback will give you a little more peace of mind but prices will/may be higher.
When we (we ;-) bought our first salvage, my Mrs, she was more than a little apprehensive. Negative or scarred would be more adequate words to describe how she felt about it. Now days she sends me pictures /links of salvaged cars with assessment of parts that would be needed to repair them. This is how much the situation changed.
This does not mean you should not be careful when buying a salvage. If you are careful you can get a good car at a good price (maybe a great car at a great price).
To me its all about having a reliable new-ish car that will not cost anything stupid (£'000) a month and will not depreciate like crazy.
In this case as Duncan mentioned "£3250 doesn't seem cheap enough when a quick ebay search shows £3500 gets a non - cat C". Up to Sub 3k would seem the right spot for me. 3k if the condition/mileage was exceptional.