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The 1996 Ford Falcon range of configurations is currently priced from $2,640.
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The 1996 Ford Falcon carries a braked towing capacity of up to 2300 Kg, but check to ensure this applies to the configuration you're considering.
In good condition, which his clearly isn't, a 1996 XR6 would be worth $2000-$3500. In its damaged condition, his is worth scrap value, barely worth $500.
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The advice she has received is clearly rubbish. If as you say the car is running well, with no suggestion of a problem, she should keep servicing it as she has, and keep on driving it.
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By locking in third gear it’s going into ‘limp home’ mode, probably because the computer has identified an electrical problem with the gearbox. A diagnostic check should identify the fault.
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The Ford Falcon 1996 prices range from $2,640 for the basic trim level Sedan Classic to $8,800 for the top of the range Single Cab Longreach Outback.