If this is your first tractor restoration, I'd recommend aimming a little lower.
Not to over simplify, but that's a big tractor, and big tractors have big parts - and big parts are expensive.
I'm not sure what scrap prices are these days, but at 5 or 6 tons, you're not really risking much at 1500.
But I'm willing to bet the owner knows exactly what it'll cost to fix, and priced it accordingly.
A 1206 represents a significant investment. It's not the kind of machine a guy wants to just clear out of the yard because he's tired of tripping over it. I'm sure he did the math before making the sell decision.
On the other hand, it depends on what your goal is. Aside from the utility value, I personally think the 1206 is one of the nicest looking tractors there is, and it's certainly worth restoring.
If you want it as a hobby project, then the bottom line doesn't really matter - you're paying for the fun of restoring it.
And I'm not the only one who feels that way about the 1206 - there's certainly a solid market out there for them. You probably stand a better chance of recouping some of your costs than with some other models.
BUT, one thing I've learned as a "truth" in the tractor world:
It's ultimately cheaper to buy a tractor in good condition than it is to put one into good condition.
The simple fact is, parts are a whole lot more expensive individaully than they are bundled together on a working tractor. Only way around that is to have a LOT of patience for good deals.
If your goal is to have a nice 1206 - buy a nice one. But if your interest is more in doing the work for the fun and satisfaction of it, and you have the resources to support a loss, this sounds like a good place to start.
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