Have you talked to anybody about making some pulls on the car?
The estimate is high of course to fully repair the car, but there's a lot that you can do.
For example, you can source/install a used gate...there's no need to paint it at collision shop rates, bumper replacement could be handled by you, etc.
Unless the car's a lot worse than pictured, I don't see a reason to give up so fast, especially given how scarce they are becoming.
To me, it's funny how everybody throws a fit (screaming about how it should be "saved") if a rusty old pile of crap is in a boneyard, but some collision damge, and it's a writeoff..
I work as a collision tech (bodyman to most folks), many old cars could be repaired and put back into service for a lot less than the shop's door rate...especially if the business in a given area is slow, which is the case in MANY MANY markets right now. Might take a little legwork to find a shop that wants to mess with it, but the way I see it is, it's yours, that money would go a long ways toward repairing/upgrading a car you already know, or you could start all over with an unknown quantity and hope for the best. Should be able to get it pulled and the quarter roughed out and still have a pretty substantial amount of your compensation left for parts/upgrades.
From what I've seen lately, $3500 isn't going to buy a very slick wagon....at least the ones advertised for sale. Saw a decent one in Dallas at 3200, but a long ways from you. Probably the best one was just sold on ebay for 3600, but even it needed some stuff, and was in Illinois. I missed it by just
that much. :?
I'd sell you mine, but it wouldn't pass an emissions inspection(prior owner hackery)...which I think is going to be a problem for you with many of the cars for sale. When it comes to Emissions,first thing most hobbiests do is rip it all out.
Good luck to you whichever way you choose to go.