TC 5, I have a TDC-5 skidder (the diesel version). I purchased it in Maine about 3-4 years back for about $1,500. However, it runs great. In addition, the Gearmatic 9 winch was just rebuilt (new friction material), so it was ready for action. That being said the $500 target you mentioned may not be bad given the state of the motor. Regarding the drive tires. I have don't have the original grooved tires on there anymore. The set I have big lugs, which catch the track and carried it around. I can tell you with experience that smooth tires are a detriment. This is particulary true when you are hauling logs in wet conditions up hill. The tires WILL spin. You'll get there, but you'll spin and wear the tires more quickly. Where are you located? How are the tracks? As mentioned above, these are not easy to come by and I'd be interested to check it out for those. It's always nice to hear that there are others of these things around. You don't see them often (or at all). Regards!
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