Why don't you try to find someone who can help you with the teardown & rebuild, fix it, ride it for a season, and consider selling it after that? Maybe you won't need to buy newer, and you have the satisfaction of doing it on your own. There ought to be some member who can help you with it where you live. An operable 1985 is the 'good' year to have, as it's the first year. I think all of us who were old-enough to be around when it was released, will recall the rumors that floated around about the initial year's production. It's been a topic on here in the past. The closest thing I think I could compare it to was the Kawasaki Blue Streak 500 two-stroke triple cylinder in 1969. Plenty of dealerships saw the Mach III's go out the door in the a.m., and return to the dealership in the afternoon, on a wrecker, after an enthusiastic owner looped the bike, because he couldn't handle the sudden wheelie-prone nature of the two-stroke powerband. My '71 was much-quicker than my roommate's brand-new Sportster 1000.
If the rest of the bike's in good shape, and only second gear is needing replacement, (though until you split the cases you don't know what you'll find) you can fix it, ride it for awhile, and maybe sell it either next year, or towards the end of the riding season. Spring is better than fall for selling a bike in the snow belt, as we know.