Something else to consider is whether to replace the clutch (assuming it is the 6 speed)
This again adds to the cost.
Obviously, the labor costs of replacing the engine also have to be considered. Something that one person considers easy is often a lot harder than expected and takes longer as well.
The other point is the condition of the rest of the car.
If it is in good shape then it is a good idea to go for it.
Replacing it may be a little more work than you think
[quote=“ssgenius, post:22, topic:767010”]
Replacing it may be a little more work than you think
[/QUOTE]Looks like it takes less than 90 seconds. 
I’ve swapped engines myself in a few vehicles. I know there’s work involved, but I still think with a good used engine (and even with a new clutch and various other “might as well replace it while we’re here” parts), this car could be back on the road for a lot less than 7 grand.
This. My sister had a Civic engine blow up on her (her fault) and the dealership wanted five grand to replace it. I found a same year model at a junk yard and had a buddy (a former Honda dealership mechanic) swap the engine - it came in under two grand, total. She drove it another 6 years.
Another possible expense might be having to replace the catalytic converter–when I had the engine replaced on my 4Runner, the check engine light went on after about 20 miles and I had to spend almost $500 extra to get the converters replaced.
If it helps, here is the checklist I run through when faced with a “fix it or replace it” decision:
How much is the current car worth if running?
How much can I get for it as is?
What is the total cost of repair to get it running?
What shape is the body and transmission in?
Have I noticed any issues other than the engine?
What is the cost to fix it up “right”?
Can I replace it with something at least slightly better for the cost of repairs plus what I can get for it as is?
If not, how much more will a slightly better replacement cost?
Can I replace it with something much better for the cost of fixing it up right plus what I can get for it as is?
If not, how much more will a much better replacement cost?
And finally:
Do my finances dictate any part of the decision?
Once I know the answers to those questions I can make as informed a decision as possible. It’s still as much art as science, though.
Decided to put in the new engine. Yes, went through all of those points…