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I agree on a second opinion. If your head is warped and is bad enough, while the engine is running (or turning over to start), with the coolant cap off (not fully heated, of course), the coolant will splash fairly wildly.
Heads ARE very expensive. Just having one resurfaced is pretty expensive. Klaus is right on prices--it's very likely you can swap an engine for less than you will get an independent mechanic to build from head up.
Honestly, I imagined a mechanic plugging up to read codes and saw a LOW COMPRESSION ON CYLINDER THREE and called it. It takes a LOT to completely lose compression like that.
As far as other cars, Toyota is definitely the 'most' reliable. But I've seen prices on autos, parts, and labor go up so drastically on Toyota and Honda that it's getting hard to justify the cause.
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