With your budget in mind the 940 turbo would probably be a better bet.
Converting the Auto 960 to manual is possible. Some use the 940 M90, other go with a BMW gearbox along with some other possibles. The issue is they all need adaptor plates, prop alterations along with a flywheel and clutch of some sort. You can use a manual 940 pedal box. The costs for all these little bits add up and then once you have done all of that it is not easy to get much more power from teh engine.
I have sold coilovers to a couple of guys in Sweden who have fitted BMW engines complete with gearbox as a package but that then gives you the trouble of lots of wiring.
The 940 has lots of power potential and is simple to work on
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