Six weeks ago I bought a 2000 Subaru Outback with 120K miles on it. By all accounts (three mechanics and on a lift three times) it looked very good. However, it had a very small oil leak and it dripped on the exhaust. I decided to have it repaired. When the head came off it was warped and so was the block. I'm sitting with a worthless car and feeling pretty stupid. I always heard how dependable and wonderful these were and, for the five weeks I drove the car, loved it. Do I replace the engine (tranny, too) or do I just sell it for the $1200 I've been offered. Pretty bummed.
Sounds like the mechanic is about to work one over on you. Im guessing the mechanic or someone he knows is interested in your car? I really doubt your block is scrap. You need a new mechanic. And why the tranny?