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Hello All,
I am new to this world and perhaps way over my head. Really hoping someone out there can give me sound advice. :)

I have a 1980 300 TD Wagon, 123 5-Cylinder Engine with 175,000 miles.

Broke down with loss of power and noticeable oil loss beneath the car, but pulled over before the engine seized. Compression check at the dealership where car was towed showed no compression in Cylinder 5. That was April; car was towed home. Recently, when draining the oil we found coolant and oil mixed together. Am thinking blown out gasket is accounting for both loss of compression and oil/coolant mixture. My mechanic, a mercedes hobby guy who works out of a shop behind his house wants to take the head off, verify its continued viability (i.e. no cracks or damage), and replace the head gasket and any burnt out valves. He says he can do this parts and labor for $1,000-1,200.

Here are my questions, Is the engine worth salvaging if coolant got into the oil mix? Are there likely to be other compromised parts if the car sat since April?

Selling the car inoperable, any advice about its FMV, in fair cosmetic condition and with $4,000 in other repairs within the last year: front end, alternator, starter, electrical, hoses, etc...

Buying a new engine? FMV?

My mechanic charges $40/hour for labor, which is super reasonable as he works out of his backyard garage. Any help you can provide will be super valuable and thanks for helping someone out who has somewhat literally, driven up shit creek.

Thanks so much for any advice you have,
She is a pretty wagon...but a money pit Gamble
:confused:
 

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Have any pics to post? Where are you located? Body condition would play a large part in the value.
 

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Have any pics to post? Where are you located? Body condition would play a large part in the value.
x2 no way to advise you.
 
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