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I think your only realistic option is to put another engine in it.
I mean, you can either pay $7K to repair this one, or get another car altogether. And you're not going to get a replacement car, like your 3 series, for 7 grand -- that's for sure.
As it is, I'm not sure what you could sell it for. I suppose worst case scenario is that you fix it, then sell it -- for maybe like $15K?
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