Our 1991 Jeep Cherokee just overheated and lost compression in one
cylinder. So basically, the engine is toast.  Just last week we put in
an entirely new exhaust system ($1200).  Our mechanic could put in a
remanufactured engine for $3K.  The car has 150K miles but a great
body, lots of extras (power everything, leather interior...)  We don't
have a lot of money to spend (except for to ask people on Google).  We
don't know what to do.  We live in Michigan and like 4WD.  What advice
can you offer?

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Clarification of Question by juker-ga on 30 Oct 2002 20:47 PST

As a note, the blue book value for the jeep is just under $3K.  With a
new engine would this be accurate, or does having a non-original
engine reduce (increase) the value?

Hi,
 First off, I would try a different repair shop...3k for a reman...wow
 1200 for exhaust,,,but anyway I would get a used engine from a
junkyard ..shouldn't cost more than 1200 installed..if it does try a
different shop...make sure both the labor and engine are warranteed
for at least 30 days.

I concur. $3,000 for a rebuilt engine is ludicrous, even including labor.

Just to clarify...the exhaust cost was for a full system replacement
(including catalytic converter, exhaust manifold, etc.)

And the engine suggested is a remanufactured (new) not rebuilt.  My
mechanic tried to find a used engine to no availl

Thanks!  Any idea on how long a transmission lasts on jeeps?

Many salvage yards across the U.S. will warranty the engine for 90
days or even six months; others will only for 30 days.  Generally the
price from the companies with the better warranties are not much more
than those with lesser warranties.

Oh, and BTW - check this website.  It searches many salvage yards
across the country.

http://www.car-part.com

I have had good success in the past

You are all missing this man's point. He does things the right way by
getting parts new. The exhaust system was completly worn out after
150,000 miles so that was a good thing to do and now he should get a
completly remanufactured new engine. If any of you live in a big city
you would know that junk yards get from 1/2 to2/3 of the new price for
their parts. They look it up in a book and that is the price. They
sell everything because there are so many people looking for the same
thing. And another thing is that car dealers get first pick for the
really new vehicles.

Most likely, if it overheated and lost compression, you blew a head
gasket. You would need to replace them both with a cost of roughly 20
bucks a piece. Would take a decent mechanic 4 hours tops.

It comes down to economics and risk.  If you have a great mechanic
that you have total confidence in it could prove to be a good move.  I
would price a new unit, and see how much you might get for the unit as
is.  They might give you more than you think because it would be cheap
for them to replace the engine compared to your cost to do so.  I
doubt the new engine would drastically change the value of the unit
because that value factors in the fact that it is a running, viable
unit.  Also the value of used cars is not what it used to be.

I would figure what the monthly cost along with an estimate of length
of time the old car would serve your purposes assuming it was repaired
properly with good skill.  Then factor in a reasonable amount for any
other repairs and replacements that might be required in the time
period considering the age of the unit and the number of miles it has
run.  I know many people have no choice, but you appear to as you are
planning on spending as much as $3,000 to have it repaired.  If safety
is a big consideration, where a break down might prove life
threatening, that would weigh heavily on my mind.  It might take
perhaps a year of use to warrant the expenditure, but if it lasted
another year or two with few problems, it could be worth it.

Then I would determine if a new, comparable unit would fit into my
budget.  If I could comfortably afford to change vehicles, I would do
so.  If you are simply looking for maximum usage on the old unit or
are so fond of it you hate to let it go, I would keep in mind the
risks involved in doing so.  There are few things more aggravating
than an undependable vehicle, and it can be dangerous for more reasons
than simple failure and inconvenience.

I would not replace because I do not have a mechanic I trust, and I
have known people who ended up with a botched job and oil all over the
driveway at that.  If the choice is purely economic, I would make the
calculations and factor in the risk and compare those figures with the
cost of acquiring a new unit.