Both prices are high, IMO, but the used engine price is ridiculously high. The rebuilt engine price reflects some very expensive parts (pistons). I really think the OM617s should be entrusted to specialists like Metric Motors in CA or possibly Noels here in Orlando that do a lot of Mercedes engines. Both of those can get you an engine for a bit more than $5K, I think. If you go with the local guy (or anyone, really) you need to ask them what is new and what is being reused, etc.
Rick
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