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I just bought a 1997 ford ranger, everything is in great shape, except for a single section of rust on the frame, above the rear driver side wheel. I can't return it because I bought it in KY and they have an as-is law there. A mechanic friend put it on a rack and checked, the rest of the frame just has a bit of surface rust here and there that can be fixed easily, but I can't get an inspection sticker until the bad spot is taken care of. Another friend said that it looked like the frame was still strong there, but it would need a metal piece shaped and welded on to be safe. I just graduated college and I'm trying to find a job, this was bought with my tax return so I could have a vehicle to get to work in, (and go fishing in ) so if I can't fix it i'm up the creek without a paddle. Could a metal plate or two be welded on so that the truck would be ok to drive? I don't plan to haul anything heavier than some groceries or fishing poles, and the truck would be only driven on roads, no off-roading.
You could locate a local welding shop and take it in for an estimate to cut and weld one or two plates to reinforce that area. Paint it with spray primer, some more rust proof spray and top if off with spray undercoating.
I have welded lots of frames & plates.... that frame is seriously compromised.
But by the pic alone, I think a properly shaped piece of plate steel could be welded on there and if done right will restore most of the integrity of the frame.
That being said, I have on occasion when I was desperately poor and unskilled with a welder took frames like that, used drywall compound and cardboard, oversprayed with undercoating finished off with a bucket of muddy water tossed on it for effect got trucks to pass a visual safety inspection.
I do not recommend you do that however. Find a half decent farm boy with a welder and some scrap steel who can put a decent and more or less safe patch on it.
Some states will not pass a repaired frame. Better check into that first.