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engine problem...replace or walk away?

Hi, this is a question about a 1999 s70. Forgive my ignorance here about these FWD cars, but I have a simple question. Mechanics have diagnosed my friend's car, based on compression and leakdown tests, with either a cracked ring or bad pistons on two cylinders. The estimate is 5-7k for a rebuilt engine. She just purchased it eight months ago for nine thousand. It has about 90k on the odometer. What would you guys do in this situation? Becuase I play around with a 122 and a 142 I have been asked for advice. i do not know what to say. On an older car that isnt worth much I'd go to pick and pull and get a hundred and twenty dollar engine and throw it in with a hard weekend's worth of work. (done it once)I cant even imagine trying such a job on this kind of car.

Am I totally out of line to hope that a used low miles motor could be found for about a thousand dollars and that the total job, including new timing belts, rear seal, water pump, misc gaskets, could be done by a semi decent shop for $2500-3000 (including cost of engine)? I'd like to give some good advice here. Myself, I'd spend way to much time working on the project forever... use my bike and other car for months... but what would you say to a girl who isnt mechanically inclined and who took out a loan to get her first "nice" car hoping for some reliability?

Thanks,

jesse






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