Hi, I'm interested in the Peugeot bike. Is it in good working condition?
No it isn't at all.  What you're basically buying the "Peugeot" brand.  The frame is the only thing in great condition, so you will need new tires, seat, and handlebars.
I know those old Peugeot are good bikes. That's a shame. $60 is a lot for that just a frame would take $25? 
$25 is way too low!  Think about it this way, if you invest $100 in repairs then you will pretty much have a new $500 Peugeot bike!  I can go as low as $55, and for that price I'll even throw in a new helmet!
I need a bike for school and I'm on budget. I've been looking for an older bike that I could spend some time on but those repairs are going to be costly. You maybe right but I just don't think I could do better than $30. I was just hoping you would be willing to help me out and give that bike a good home.