I hate to see one wasted that could be put back on the road.
In high school I bought a 66 Mustang from a teammate for $250. It had
been hit in the rear quarter, not hard, but needed a quarter panel. I
swapped the front cap with mine and sold parts for more than I paid
for the car. In retrospect that car was in better shape than mine and
I should have put a quarter panel on it and sold my car. At the time
mine was sentimental and I was afraid of the work involved in
replacing a quarter panel. Now I know better.
Unless the rust is bad I would lean toward fixing it. A SPEC racer
might buy it as is and not be worried about the interior.
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