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My off the cuff impression: something doesn't smell right with the other guy. Either he's trying to screw you, or he's one of those people with unreasonable expectations of the world. I'm on your side on the issue. Car was bought "as is."
In California, there's a 2 or 3-day "cooling off period," where the buyer can return a used vehicle. Is there anything like that in Ontario? The guy complained a MONTH after buying the car, and already did repairs. I'd say he's SOL, not you.
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1987 Venetian Blue (looks like grey) 930 Coupe
1990 Black 964 C2 Targa
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