Question should I try to rebuild or buy a new motor .
Why spend over 1,000 on a car worth 6,500 before you have to? Are you a mechanic? A rebuilt engine is less than the cost to install it, so you're looking at spending about half as much as the car is worth. Labor of love?
No matter how much work you have done to the car previously, it's a matter of economics. If you are going to put half the value of a car into repairs, it better be a car that is rare, collectible, or at least a desirable model that is retaining it's value. Either that or a car that has so much sentimental value to you that you don't mind pouring emotional money into it that you will never get back out.
That said, I would recommend getting a rebuilt engine that comes with a warranty. I would doubt that you have the resources to do as good a job rebuilding your engine as a remanufacturing company and your warranty is a lot less valuable.
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