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I would concur that it isn't worth trying to fix it - they sold for $25-$50. To solve most of the problems you need a completely new chassis with decent wheels and a good motor.

The Bachmann 4-6-0 is a good alternate, and lots has been written on upgrading it, etc. Alternatively, there was a similar cheap "Buddy L" loco sold for a while, and you may find one for a decent price (less than $100.)

View attachment 64090
Is that buddy L set outdoor grade? I’ve seen some eBay listings for some cheap track that I could use to expand my garden railroad.
 

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I apologize if my intentions were unclear. This Locomotive, though admittedly a cheap toy from the 1980s/1990s is of significant sentimental value to me. It was the first G-Scale locomotive that I ever saw, and it was something that I looked forward to seeing every Christmas at Grandma and Grandpa's. My Grandfather passed away a few years ago, and my Grandmother's health is declining. When she gave it to me, I promised her that I would find a way to make the locomotive run again, better than it ever had before. I would make her proud and make that Locomotive something to behold. My goal is to preserve as much of the original locomotive/tender as possible, while still upgrading it to be a fully functioning hauler. I'm open to keeping the shell and slapping it over a superior chassis. I'm open to gutting it and replacing the motor of an RC car or RC locomotive with some more power. I'm even open to making it a dummy locomotive with a powered tender or van. I don't own any metal G-scale track, so getting a locomotive chassis that is track powered isn't much of an option. As far as a buget goes, I don't have much. I am a recent college graduate with a wife and soon children to support. I can't put down more than between $100-200 into this project for the next couple of months. Over the course of several months, years even, I plan on saving to put more money into this project, and potentially expand into more "Legitimate" G-scale modeling. For now, my main and only concern is taking this precious locomotive from my childhood and making it into a strong locomotive to honor my Grandparents, and to give my future children their first taste of model railroading. Any help is greatly appreciated. Projected costs are always welcome. I have a stubborn warriors spirit, and I will find a way to do this, come **** or high water. When I've done it, I will post my procedure online so that others like me who don't have much can get their foot into the Hobby and can reclaim their "cheap, knock off" G-scale trains and make something beautiful out of them. This is my manifesto and my goal.
That was inspirational!
 

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I think it is just branded as Buddy L. I believe the company that actually manufactured it is actually called keystone. If you only use the running frame you might be able to find a normal keystone set on eBay to get a cheaper drive since it isn’t marketed as “limited edition.”
 
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