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Oops, forgot about rust. Yeah, you're probably better off replacing it.
My dad bought a mid-80's Ford diesel F250 for that price a couple of years ago. He ended up selling it within a couple of months. It was so down on power that it ended up returning poorer fuel economy than the GMC 2500 V8 he replaced it with. I would avoid those.
Is it time again to lament about the lack of small TD pickups in America? LAMENT.
BTW, I understand the 4WD and ground clearance issues, as I live in the mountains. Chains on 2WD are okay for light snow on nearly level ground, but 4WD has gotten me in and out of places that a chained 2WD couldn't touch, and 4WD with chains gets you through anything.
If you have a few bucks left over, set them aside for some diff locks. You'll be able to climb trees then.
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