05 Engine ..replace or sell

My son’s 05 4Runner Limited 4x4 has 266000 miles on it. I should of replaced the engine 3 months ago when I paid 4200 to have the head, head gasket, valves, water pump, radiator, timing chain replaced...but I didn’t. After the work was done it ran great. No issues until last Friday. Knock knock knock. Had it towed to shop hoping it was something within the work they had done as I had a 1 Year 12000 mile warranty. Well they called today and said when they dropped the oil pan it had metal and bearings all in it so a bearing or something had went out in the bottom end. Said my only option is to replace the engine with a used one or rebuilt. I asked about all the parts and work they did to the top and apparently that’s just a loss. He priced a used engine with 90,000 on it and a one year warranty..full swap out for around 5000. My son loves his 4Runner but I’m really conflicted on putting 5000 into it. Maybe I should just find another car. What would you do? And what would be the concerns? I did say if I replaced the engine I didn’t want another 05 because of the bad head gasket issue. Don’t want to start the cycle all over again..

 

I am curious, how many miles on the vehicle when you did the top engine work?
Also, but verify, I think the head gasket problem was solved by Jan 05, but please check out this site for that specific confirmation.

 

About 3000 less so 263xxx miles.

 

200K+ miles?? Time to get rid of it.

Yeah you eat what you spent or spend the other 5,000 and get two more trouble free years OR two trouble free weeks.

"Do ya feel lucky punk?" "Well do ya?"

(Sorry.....Clint Eastwood.)

Seriously though I wouldn't spend it.

 

First of all $5,000 sounds like robbery for a shop that probably owes you an engine anyway, location might play a role too. Here in middle America a buddy hydrolocked his GX470 (same as V8 4runner) and insurance paid out $5k for a used engine plus all fluids and clean and rebuild of many other parts in the process. The engine itself was only $1,800 though and the shop originally quoted way less before they knew insurance was involved. At this point it sounds like a loss to me too unfortunately.