How much does it cost to replace an engine? on 1996 Toyota Avalon

I bought a 1996 Toyota Avalon XLS less than 5 months ago and have been having problems ever since. The first issue was the fact that I had to replace my Knock sensors. A few weeks later, white smoke came from my car when I started it up and the mechanic said that the engine was getting too my oil, by which time I was adding 2 qts per week my oil light stayed on.

Now my latest issue is that my car simply shut off in the middle of driving and when I attempted to start it up, the engine began to knock which was loud.

Now my question is should I take the 1500 dollars the dealership is offering me and accept my losses or refurbish the engine to avoid future issues with a new headache car?

1 answer
i would budget around 4-5k for a re man motor with 3yr 50k warranty. it is a nice car but it is up to you whether it is worth it or not.

Roy