On first impression I’d walk away. If you can get the info out of the dealer and find it’s insurance history, then it might be worth pursuing if the price is right and you just have to have it.
Speculation on the reason it’s VCAR. At some point in its life it’s needed work worth more than or very close to it’s commercial value. No insurance company is going to “write off” a £7-8K car, if it was done recently, without good reason. A heavy crash and you can reach £8K very quickly. Minor, superficial damage would need to be LOT of work to get to £8K.
On a sub £1K car, CAT D can be as simple as a small dent and a few scratches. The Wife’s Polo was borderline with a small dent in the wing, a few scratches and a new door mirror cover.