Taxman

If you do a purely economic analysis of this problem, which I'm sure you'd appreciate, the answer is to keep driving it as is. I am assuming it is blue smoke you are blowing, not black. If black, you could have other problems that are causing the oil to burn, like injectors washing down the cylinders.

If it is burning oil (very blue smoke) I would continue to drive it and maybe try putting some type of treatment in the oil to reduce the consumption. I'm not a big believer in oil treatments, but it sounds as if you have little to lose.

Given the other problem with the car, I wouldn't put any more money in it. I would drive it and look for another one in better shape for $2000.

Just an opinion.

Joe