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I was in your shoes a few years ago and due to budget constraints really had search for a deal to get into a mc. I would not worry about the rust but you need to check all the fluids and then go out for a long water test, recheck all the fluids looking water in the oil and transmission fluid. It will turn milky looking. A compression check is also definetly a good idea but the water test will give you a decent idea of the power/smoothness and if you can get him to pull you even better.
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