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1). What would you do?

I'd rebuild it, but only if I knew the reputation of the shop and got a 12 month/12K mile warranty on parts and labor.

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2). Think those prices are good ones?


The rebuild price is cheap (maybe too cheap?) depending on where you live. Beware that there are rebuilds - and there are "quick fixes"..... and they aren't the same by any means. A quality rebuild is quite involved.

The price for the used engine is too high unless it includes installation. If installation is included, I'd still want the same warranty.... which you're unlikely to get on a used engine.

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3). Can a blown head gasket really cause me to need this overhaul or is it something else?


As Charley said.... No - unless there are other issues - like the engine being worn out from very high mileage.

While the engine is out, you might as well have the radiator rodded out if it hasn't been done - and replace the cooling fan clutch.

Frank

'89 [color:"white"]G-Raider[color:"white"] [color:"black"]Supercharged 3.0L, MegaSquirt 2, lockup A/T, 2.5" exhaust, 172k, Cibie H4s/Oscar SCs, Hella Micro DE fogs, Cobra CB, Superwinch hubs, LSD rear/Aussie Locker front, Bilsteins, Lifeline AGM, Rust-Oleum