[W126 Coupe] Head Gasket Blown

[Axel Wulff]

I brought the car in this morning because it had been running a little warm 
lately, sitting in traffic for long periods of time. Was going to have them 
do the usual maintenance at the same time, brakes, oil change, odds and 
ends.

When my mechanic pulled the dipstick for the oil the contents appeared 
"milky" and they reckon that the head gasket is leaking coolant into the oil 
and oil down the side of the engine.

Worst case scenario is $5,500 and includes:
- New cams ($700)
- Valve stems and guides
- Timing chain and guides/tensioner
- Head gasket (of course..)


All in all, about $3,250 in parts ($$3,450 if I decide to change the water 
pump as well) and about $2,000 in labor.

As the engine has already 200K miles on it, should I be looking for a 
replacement engine instead? My mechanic called around and found one in 
California with 111K on it. Installed (with new timing chain) it will run me 
$4,400.

What is the better option? 200K engine with a head job or take the chance on 
a 111K replacement engine?

Your inputs would be appreciated.


Regards,
Axel J. Wulff