Mark:
Of course you're right, I didn't give you a proper answer to your question. Short answer should have been: in my opinion, when in doubt, go with a new unit. I've been caught short in the past with a battery cable which looked all right: I checked and double-checked the battery clamps and inspected along the run as far as I could go, and satisfied myself that the cable was serviceable, to no avail. The cable end inside the battery clamp was rotten and dropped current flow to a very low ebb - took a long time to diagnose; the cable run was chafing against a body member somewhere (this was some time ago, and I've put it behind me) but I remember electrical symptoms which came and went for some time. My take on "cleaning up and re-wrapping" boils down to what to use, as you've asked, and how reliable and long-lasting the repair might be. I just don't have any expertise to share in this case. I realize that this info is really of doubtful help, but I'll reiterate that I've seen listings for replacement cables (both) for well under (relatively speaking) $100, and as I've said, that would be my way to go, with the added security of knowing that THIS part of the electrical equation would be solved for the duration of your relationship with the vehicle.
Keep us up to date on your progress - I'll be interested to hear if you're able to make the repair without resorting to new pieces.
Regards,
Garth
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