Wow, that IS sloppy! I would trust what Blue Ox says, we've toured their plant and they are top notch. Check the cost of freight on both options. They will no doubt do an excellent job of refurbishing, but that is 2/3 of the new cost, so I would lean toward buying the new equipment. Sell the old iron to a junkyard that buys old iron.
Ask the Blue Ox folks what they recommend for lubricating that joint. My Blue Ox arms look to be the same, and mine are tight with many more miles on them.
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