I am not all that familiar with the spur gears on a buggy but I would be looking to gear the thing nearrer to 6.0:1 than 3.00:1. I don't believe you are looking to set a land speed record. At that gearing I doubt it would climb a small incline let alone muster up enough torque to make a jump. That gearing is likely the cause of the excessive heat you have mentioned as well as the cogging.
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