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I'm a transplant from Chicago to southern California. I took the 1986 Legend I purchased new in Chicago with me. It had rust in the usual places for that vehicle, but it didn't get any worse. Shortly after moving here, I bought a clean bodied 1990LS. Sadly, both of my 1st gen Legends are gone but I have a clean 95 I purchased from an original owner in Los Angeles.
To your point, it sounds like the bodywork price you quote is very cheap. From what I've seen in the past, that much restoration costs a lot more, but congrats if you are getting a quality job for the # you cited.
My concern is that only the visible rust would be removed and its a good possibility its lurking somewhere else. Another option for you might be to locate a rust free sunbelt car. It could take quite a while for it to show rust in a road salt environment whereas, something might show up on your present car right after you thought everything was treated.
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