It isn't in the red. The volume is very low and all channels distort very broken up and fuzzy. I always clean and demagnetize the heads. It was fine- I turned it off and later tried to listen to what I had done and it was wrecked. I can't test the outputs right now but the headphones are fine.
CDs and all tapes distort except at very low volume, much lower than I'm used to working with. Even then I hear distortion in the bass. What's strange to me is that whatever went wrong seems to have happened while the machine was turned off. It was working when I turned it off and then it was distorting when I turned it back on.
So, we can surmise that its not a mechanical problem and most likely a failure of a simple part like a diode, transistor or capacitor.
So to address your original question, yes. Get an estimate from a reputable repair shop that has experience with these types of products and get it fixed. Scrapping it and buying another one would not save you any money and could possibly expose you to additional problems if the seller is not 100% forthright on the condition.
Cheers!