Well seems the price was right seeing as the motor runs. Looks like the transom needs replaced. Motor should not move at all. My keel has some damage too, don't seem like yours was repaired well but it can be fixed. My fiberglass guy gets about $1000 to do transoms, that's with him removing the motor and replacing it. A good glass guy will want you to get rid of that transom cap. I'd pull the aluminum off and look and see what the top of the transom looks like. If it's wet then I'd say she's screwed.
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Current boat(s):
1985 V-20 Cuddy/ 470 IB/OB
1972 Egg Harbor 38’ Sedan/ 454 Crusaders
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