Okay, personally I tend to agree with the other guys here about Supra vs FTO ... the FTO is a much nicer NA car ... the interior wins big points ... the Supra's interior is just nasty, its like being in an old truck... on the outside I still prefer the FTO, the Supra is a bit too bulky for me, I have to say, tehy do look very nice if you spend a lot of money on aftermarket kits though... but if you're not going to spend the money on improving its looks, get the FTO, its much nicer stock. But you really have to drive both for a while to get a good feel for what you want... for me the FTO won hands down within the first 5 mins

If you test drive a good one you will feel the same way
Anyway, back to your questions...
Use whatever is wrong with the car to get yourself a better price, he's not likely to reduce the price just because you say you don't want to pay what he's asking.... You have to put forward to him that the car isn't worth what he's asking & its going to be more than its worth to get it up to scratch. If you haven't already had the car checked over mechanically then you can't really go back to him with an offer that he is likely to accept, at least if you have it inspected & there is something wrong with it you can use that to get a better price... and if theres nothing wrong with it, then I think that what he's asking might be pretty fair & someone else will come along and snap it up.
You say he was asking 18k to start with & he had obviously tacked on an extra 2k so that he has some bargaining room... if he had advertised it initially for 16.5k he doesn't really have much to work with...
If you put it to him that its going to cost X amount of dollars to have it steam cleaned on the interior to get rid of the cigarette smell (find out how much

), X amount of dollars to get the bumper fixed... (you would be surprised how much it will cost to repair - depending on the damage, it might cost anywhere upwards of $1000... cheaper to get a new front kit & get it painted.)
If the paint is discoloured or damaged take some $$$ off the price... (look for chips & scratches) Lift up the carpet if you can & check for signs of crash damage, also check underneath the car because bodyshops will usually coat the underside with dirt & muck to cover up weld marks & things... go around the exterior of the car & tap the panels with your knuckles.... if there is an area that has a different (not metal) sound when you tap it, then it has probably been damaged & repaired with body filler.
If the engine bay is so clean it is possible that it is to hide oil leaks or things like that... take it for a nice long, spirited drive & then check around the engine, under the engine cover etc... you have to drive the car for at least a half an hour to an hour to get a good feel for it, redline it, takes some sharp corners & test the suspension, the brakes, the turning circle & definately turn the wheels to full lock & see if it clunks, that can mean the CV Joints need replacing which are not cheap.
See the Newbies section & have a look at the "What to look for when buying an FTO" sticky topic... that is pretty much a guide to buying any car... and as I said, check some Supra forums for common faults & have them checked out at bare minimum.
Also, the fact that his logbook is entirely in Japanese is a bit suss if he has had the car for a year... he should have at least had 2 services since then... so tell him that unless he has some kind of evidence to show that it has been serviced, that you can't be sure that it hasn't been neglected & suffered some kind of damage with the oil not being replaced for so long... check the oil & other fluids to see what kind've state they're in as well... if you need to get them all replaced as soon as you buy the car thats some more $$$ that he can take off the price, or you can just foot the bill for it yourself...
Anyways thats just my 2c worth... good luck with it
