I have an 02 Chrysler Sebring that the engine started making a terrible noise. My mechanic, who hasn’t steered me wrong before says it’s a bad engine. The engine is a 2.7 litre and apparently has been prone to issue. So looks like my choices are replace the engine with a rebuilt (comes with warranty of 3 years cost $5k), replace with salvaged engine 90 day warranty cost about $2.5k) or try to sell the car for what I can get. Any suggestions?? If I do switch engines should I go to a newer 2.7 that is better constructed, or a different size engine??
Personally I would just move on especially if its a hardtop. Its value is only about $3000 with a decent running motor.
$5000 is way too much.
Selling it yourself will be salvage yard value. Call around to salvage yards and you will get more if you can drive knocking/rattling away to the yard.
Thank, that was my initial leaning, it’s a rag top, and my daughters first car, so trying to come up with the most sensible and economical solution for her, since she has to have a car and has limited funds. Which means she has about $5k for another used car or to fix this one. Not sure which poison is better 
If the vehicle body and transmission is still in good condition I would lean toward the rebuilt engine.
Steer clear of any salvage stuff.
You won’t get much of a heap for $5k.
Depending on what she needs she can actually do pretty well with $5k. It just takes some legwork. Don’t do dealers. Use things like craigslist and local classifieds to find a private seller. Look for smaller, compact type models and have a trustworthy mechanic handy to look over prospective purchases (that cuts into the available cash a little). But there are plenty of deals out there if you do the legwork.
Body is in excellent condition and no transmission issues detected. Plus of course I just put a new set of tires on it. Really just trying to make the best out of a bad situation.