[s-cars] 1995 S6 - Overheating damage, now what?

[Thomas Rodriguez]

Hello, I am new to the S-CAR-List and hoping to receive some helpful advice.

*My problem:*  I have maintained my 1995 S6 in excellent condition,
and recently topped 225,000 miles.  The engine (5-cylinder turbo) was in
great shape until last week when a coolant hose failed suddenly on the
freeway causing a rapid and complete loss of coolant.  The engine overheated
before the car was finally stopped and towed to the shop.  The ruptured hose
was replaced and the other hoses were inspected and found to be
sound. Unfortunately the engine now has coolant leaking into at least two of
the cylinders, suggesting that the overheating resulted in a warped cylinder
head, a blown head gasket, a craked engine block, or some combination of
these factors.  Next week my mechanic will remove the cylinder head which
should enable a further diagnosis of the damage and necessary repairs.  He
is also suggesting that while we have the head off we inspect and/or replace
things like piston rings, valve seats, etc.

*My Question:*  Is it worth fixing this engine or, given it's age and
mileage and recent overheating, would it be better to replace the
engine? What is the availability and cost of a replacement engine?  I love
this car but my wife thinks it's time to say goodbye and buy a new one.  Is
she right?