Head gasket replacement or replace the whole engine?

bickleT

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I have a 99 toyota celica that's leaking coolant into the engine. It's been diagnosed as needing a new head gasket which involves 8 hours shop time plus around $300 in parts for a total of around $1200 plus whatever else they may find in the teardown. A friend says that he get a used engine for around 400 and charge me labor of 300. Does this sound like a better solution?
 
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