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Buy one or fix mine??

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First off I am very glad to see a forum that has an area for everyone that believes in off roading. Now to my question. I have aquired a 1980 Honda XL125S from an old friend that said I can have it for free as long as I give him first chance to buy it back for whatever parts I put into it. I have it running, but it smokes bad, and the valvetrain is very loose sounding. It has been through 3 of his kids and is just a stipped down, beat up, bike. So far I have about $150 in it and yes it is rideable, but I don't want to blow it up. Here is the dilemma. Do I continue on the path and pull the motor down and completely overhaul it and replace the clutch, chain, and sprokets too. OR do I save that $$ and try to find a newer trail bike(4-stroke) that would serve the same purpose for just a little more. I am 35 yrs old 5'11 and 150lbs. I do some woods riding and gravel road tripping and thats about it. Not a hill climber or a mud wollower. I have a 08 Rhino 450 for that. So what are some thoughts and/or bikes???

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Buy a newer/BIGGER bike ...... you will have alot more fun.

on the other hand .. if you want a project... parts are kinda cheap and it might not be that expensive to rebuild that 125

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