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$3K is probably OK. I have a 2001 Cherokee Sport and I'd have a hard time getting much more than that for it even though it has been well kept. But they don't go much lower than that when well cared for.
The overheating could be the vanes on the water pump are eroded away. (I have a picture of my old water pump with no vanes at all! Things erode by oxidation very oddly on these things. Probably poor electrical design causing electron flow to/from chassis. Anyhow. The water pump isn't difficult to replace, and NAPA sells a new one for about $45. Buy a nice gasket, don't use the flimpsy paper one that comes in the box with the water pump.
Get a new thermosat while you're at at for a few bucks more. Then make sure you purge the system of air. best way is to buy a $1.50 kit to purge the air by cutting the heater hose and putting the tee-fitting into it then purge through that. It's worth the $1.50. Trust me I have been through this overheating thing.
My Jeep overheated after a new t-stat, new radiator cap, new water pump (the 1st one from napa leaked immediately, got NAPA to give me a free upgraded gasket with the second one). Only after I "burped" or purged all the air out did the overheating stop. A friend who works on Jeeps for a living recommended the purping.
I never heard of the ignition tumbler issue. Mind seems perfectly fine. I don't gorilla it...but my kids probably abuse it when I'm not around. My jeep has survived two teenage kids who are now in college, and one is just starting to use it. Great kids car..cheap to fix, 4wd when needed, small for an SUV, cheap to fix, did I mention cheap to fix...and easy to fix for the most part.
Piston slap is common and mine has been doing it since I got it with 18K miles. It now has over 130K miles.
Master window switch goes bad often I hear. Mind is bad and the other window switchs work sometimes...but I don't care. The kids don't need to roll down the windows anyhow!
Depending on condition I'd be in the 2.5K to 3.0K with your buddy.
A new used engine from the same year or (1999 to 2001) is the better of the 4.0 engines. They guzzle gas thought, but they are tough!
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