recently bought a 94 E420 (140K) with a blown head gasket for $1500. I initially thought I just need to replace the head gasket and I am set to go. However, my mechanic tells me that the gasket is replaced before and the block and head is too damage to proceed. I got a quote of a replacement engine for $1650 and R & I labor of $1500. Is this worth it? The interior is a bit worn and the body need a new paint job.

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93 Toyota Corolla 177K
95 S 500 coupe 82K
92 400E 180K (SOLD)
94 E 420 150, blown gaskets (SOLD)
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