Help! We are not sure what to do. We have a 2006 Honda CRV and the engine has fallen apart(long story) We are now faced with the option to scrap the car or put in a new engine for $4000. Honda tells us that the car is only worth $3500 if it is working. Any advice would be welcome.
I would not put in a new engine. A used engine from a salvage yard makes much more sense. Call around for the best price.
how many miles on crv? body is good? you live in a rust free state?
The current car has 160000 miles and we already replaced air conditioning and it has fairly new tires and the body is in excellent condition. The engine that Honda is suggesting has 83000 miles and they can get the price down to 3900
Given the good condition of the car, I’d put the $4k into a used engine. You should be able to get another 100k out of the vehicle, and to me that’s worth the investment.
Fix the car.
Thats helpful–thanks for the input!
100k motors are $1k in my area. I know many shops that will install a motor for $1k.
@Cavell is right a used motor should be between $1000 and $1500 with around 100K on the odometer.
Another $1000 for labor.
Figure in another $500 for misc parts to be on the safe side.
I’ll add though that, all engines from a salvage yard seem to have less than 100K on the odometer.
Hmmmm…wonder how that happens.
Yosemite
There’s no need to go to a dealer for fairly routine out-of-warranty work like this.
Try “Mechanics Files” above to find a good shop.
You can also find used engines from reputable dealers on the Internet, if you want to be sure of what you’re getting and not rely on the word of your mechanic, some of whom have been known to fudge the details on the provenance of used engines.
But if you have a trustworthy mechanic you should have no problem. 
An 06 w/160k is worth about 8500. Look up used cars in your area. Put in a used motor for $2k and move on
Please fill us in on the “long story.” That might have some bearing as to your decision (i.e. if the engine fell apart because you neglected to maintain it, then it’s reasonable to believe you didn’t maintain anything else on the car, which means other expensive things will die, and you should junk it and get a different car with lessons learned).
+1 to shadowfax’s comment.
As but one example, if the brake fluid has not been flushed 2 or 3 times already, potentially expensive brake work is on the horizon. And, if the OP hasn’t had the trans fluid changed at least twice already, the car is right on target for transmission failure. All transmissions have a tendency to fail after 8 years if not maintained properly, and Hondas do have a history of greater-than-normal transmission problems.
Would the OP care to elaborate on exactly what happened to the engine?
That could help us to give answers with more validity.