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Money can fix anything and you'll be spending it plenty if you're racing it. If it's a track toy, I'd go for the cheaper one and have fun with it.
If it was a daily driver, I wouldn't touch a rebuilt/wrecked one and instead use the $9-11k for a down payment on new/certified.
Out of curiosity, how did that first cars second owner not know it was involved in an accident but you know now at this point?
Did you do a carfax and tell them then they acted all surprised?
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