I just had my 91 940SE with 217k to my mechanic. There were some issues that I wanted to address, like an oil leak coming from the rear main seal and a few various other small issues.

After my mechanic looked at the car extensively he said that it might be best to consider a new engine if I intend on keeping the car, which I planned on doing. There is a lot of sentimental value to me in the car.

He found an engine with 103k miles on it and said that basically what they will do is replace everything O2 sensor, timing belt, seals etc when putting the new engine in, unless a belt or something looks absolutley brand new. He came up with an estimate of $2,786.41 which includes the engine and replacing all the parts that go along with it.

My question is that this is a big investment. I was considering obtaining a loan for $6-7k and just completely overhauling the car. Have any remaining mechanical issues fixed, have the car repainted (paint is in good condition, but it has a few flaws), interior detailed, leather fixed (driver's side seat is showing wear) and have new speakers installed to match my Pioneer AVIC-D3 DVD navigation.

Is this worth it? I know the 940SE was only made in 91 and I really do like the car. I did have an accident when I was 17 and the insurance company wanted to total it, so the car has a salvage title because we had to buy it back from the insurance company. The actual value of the car is probably not what it should be.

Any suggestions?