the latter (impeller failure a likely cause). Yeah, almost always change out the impeller on a "new" motor. Exception might be in a purchase from a shop, similar to what you are contemplating. Even then, might get replacement noted on the receipt -- or make it part of the deal, if any doubt. I often run a find, if it runs, but don't use in on the lake until replacing the impeller. However, after replacing it and testing it, I let it go -- always lots of discussion here about tell tales and water pumping. A failure can make you paranoid -- that's no good either. Supposed to be fun.
edit. boy, sounded fatherly didn't it. btw, the l.u. probably still fine if it had gear oil. Drain it and replace the oil.
If that motor deal doesn't work out, I may have a source fairly close (KY) -- would have to see if he is still around. Diff. is it would be a private owner, and you may want to try a shop or marina.