Things like this don't just happen out of the blue. First get a second opinion. If they also say it needs an engine, then chances are you overheated it or let it run dry of oil or generally did something to cause catostrophic failure. I flog my car day in and day out and it's never let me down and runs like a top, doesn't burn a drop of oil. The difference is that I keep my eye on things and fix potential problems at their first sign.
Replacing an engine isn't that big a deal if you know who to talk to and where to get the engine from. It doesn't have to be so expensive that you are forced to move on to another car. Prices can range from around 1000 bucks if you did it yourself to over 10,000 if you were to pay the dealer to install a new engine. Get a second opinion from a shop you can trust. Lots of places just want to make a quick buck.
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1999 BMW 328i (Daily Driver) - m54b30 intake manifold, ebay headers, Rebirth Motorsports CAI, Rogue Engineering underive pulleys, Epic Motorsports Remote Dyno Tune, Custom 3 inch exhaust with Burns Merge, Schrick 264/248 Cams
1967 Buick Skylark - 430 Buick Big Block Swap.
Last edited by jared_wiesner; 08-23-2012 at 06:45 PM.