I think it has been covered but from a personal point of view I would always be suspicious of someone who told me "you can test drive the car but you can't rev it more than X revs", in exactly the same way as I prefer to test drive a car from cold, just to know that there are no cold starting issues etc.
It would make me think that there is something wrong with the car, like a flat spot, misfire, excessive smoke, roughness etc and that the seller is trying to shift an absolute shed of a car.
Red lining it in 3rd and 4th I'd have an issue with more because of the legal side of things.....I know from my D5 red lining it in 3rd is about maximum motorway speeds, so red lining it in 4th most definitely is breaking the law by a long way.
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