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What type of TaoTao is it?
If it's a 50cc, or 150cc, it's often cheaper to just buy a new scooter.
If the exhaust is cracked, chances are the frame is damaged.
Send him the bill of the new price of the scoot. Parts and labor are going to cost more than a new scoot. For instance, the ATM50 goes for $650 ($850 ship included, ~$920 for tag transfer and taxes included).
The EVO150 goes for $700, $1050 with shipping and tag transfer and taxes included.
A rough estimation for item and shipping: $400 for an engine, $150 for an exhaust, $150 for labor, that's close to a newprice of a scoot.
You could come to an agreement with him; If he's willing to pay the base price of the scoot (without shipping), you agree on paying shipping and tax, but can keep the wreck for parts.
That way you got a new scoot, with tag for like $300.
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