$700 scrap it definitely
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Wow, that's a big repair bill!
Even if the Data Basic II was in great shape, you'd probably only get about $400-500 for it if you tried to sell it. I believe the Data Basic II uses the CDM-12 mechanism which Phillips stopped making a few years ago. So finding replacement parts has been really difficult.
With that in mind, I'm gonna keep using my Theta Pearl until it dies, then move on to something else. I think Pioneer may have stopped producing the Stable Platter mechanism which my Theta uses, so I'll eventually be in the same boat as you.
If you're sure it needs a new laser, start by shopping for another unit. $700 certainly won't get you a new unit of comparable quality, but you could find a better performing used one. Even if it's not the laser, after tacking on the $200 for a gear job you're probably still looking at $500. When I was in the same boat I found few new offerings of the CD-only variety. Backwards compatible DVD seems to have taken over!
Theta repaired my skipping Data Basic II with some caps and a lube job for $225 plus freight. If you consider a $2000 transport has at most about 10 years of life, it costs about $200 a year just to run one no matter how you split it. It's a tough call. Does Camelot make a transport?