New purchase
 

Hi,
I purchased a 1995 volvo 960 at an online auction.It was listed as having minor dents and scratches.By the time I had a mechanic look at it, it was discovered that the head gasket is blown and the car is overheating.The auction company denied responsibilty for selling it in that condition without listing it as haviing mechanical damage.I am weighing my options right now.Is it worth it, fixing the head gasket? I was given a quote of $3000 to fix this and when I try to put the vehicle back in the market, the highest offer I gotten so far is $350.What do you suggest I do?Keep the vehicle and fix it, or sell it at a loss.?

Vehicles purchased at auctions are sold on an 'as is' basis so you always need to have one checked out prior to placing any bids pre auction time or take the risk as you obviously did.
If your a DIY mechanic with some knowledge and spare time you could do the head gasket and upgrade the faulty cooling system components for a lot less than $3,000.
It's the labour rates that push the cost a lot higher.
Given that you have access to good priced parts in USA and discounts available I would try to keep her alive personally.
The $350 you have been offered is really only junk value or for parting her out otherwise.
This could become a good project for you??? (assuming your a lady that likes getting her hands a bit oily of course.)