If it's just to play existing albums - then my vote is to get your existing TT fixed and add a new cartridge like noromance suggests above
If you have been bitten by the vinyl bug - then go for a new TT/cartridge/phono stage - but that will probably cost you more than your budget.
My preference right now (if I had to replace my TT) would be a VPI - although the SOTA is a very nice option also.
I am a long time Rega user, but it's taken 35 years and many $$$UPGRADES to get it to the point where I am happy with it - so Rega does not get my vote these days, especially when there are several options available that appear to be "less work"
I got the bitten by the bug...
- Started with the Rega Planar II + many upgrades = $$$
- My cartridge is a Soundsmith rebuild of the Denon DL103 MC
- The arm is the Audiomods Classic Series II
- The Phono stage is the MOON LP5.3 RS
So it really depends on what your end goal is.
Having said that your TT is a "classic" and capable of providing great sound - with the right cartridge/phono stage combo.
I would set a budget for the repair (e.g. $400) and if the guys that work on them fall within that budget I would be tempted to go that direction first. It will give you some "breathing space" to determine the answer to the question above.
You can also take time to investigate and "upgrades" that may be available for that turntable
You will also have a working TT that can be sold later to "collectors" :-)
Hope this helps - Steve