You could take the $1K and put it towards a paint job and a tranny (or tranny rebuild)... Maaco and Craigslist are your friends.

 

Lil against buying used transmission from ppl I don't know. How hard is it to rebuild one

 

On an AW4? Not worth the effort and definitely not for beginners. Apparently some JYs have warranties on their parts. The AW4 is bullet proof if it's been treated right... those that aren't die slower deaths than others, but still die.

 

Mine lost all of its fluid one day towing a empty truck box home. Buddy of mine thought maybe the torque converter went out. It'll go into all gears, P R N D but won't move. I put fluid in it and it'll move. I try starting it and it makes a bad grinding noise. Starter, flex plate.
J.

 

At one time I had my heart set on a white woody Chrysler Leberon. (watched one too many police academy movies and 80's reruns). Do what you gotta do!

 

That 1987 with the 4.0 and 5 Speed(Peugot transmission) Might, Might have the dana 44 rear axle. 1987 was a popular year, pretty much the only year I have seen Dana 44s under. I know, Dana 44s were offered under Cherokees from 87thru90, but here in Washington St, I have only seen them under 87z. I currently have two 44z, one of which is under my 1987 Cherokee.