I just bought a 1999 s80 t6 for $1,800. We recently found out that many of the seals, cam or crank as well has the head gasket, are leaking. There is oil in the timing belt chamber, and running down the back of the engine and over the turbos. I know these are serious problems, but KB values the car at $4,000. My question is would it be better to invest the rest of the cars value into the repairs (either a rebuild or a new block. I was told I could have it down for 2,500) or cut our loses and sell it?

Has this happened to anyone else?

If you think we should repair it, would a engine swap or a rebuild be better?
And, do you know where to find a good Volvo engine?

Your advice is appreciated!

 

Would likely depend a lot on the condition of the rest of the car
-mileage
-body condition
-interior
-any other issues good/bad that may factor in the make/break equation

 

Yes.

It has 175,000 miles

The body is in great shape besides minor dings.
The interior is also in great shape
All electronics work
The brakes are good and so is the suspension and handling
Even the tires and in pretty decent shape.

 

Also, we found that the head gasket is fine, it was loosing coolant from the hoses. With labor and all parts (including minor issues) it would cost 2100 to repair.

 

Worth it or not is your call. Volvos typically cost about a grand a year in maintnence. Helps if you can do some of the work yourself. Well maintained cars can reach 300k generally.