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If the crank and engine cases are reusable I could probably rebuild the engine for much less than that; that's assuming my labor cost is $0. I already have the bearings, gaskets, and seals on hand (I like to be prepared). I bet it's got broken piston rings or perhaps piston damage like burned ring lands, or the valve guides are totally shot. I don't have the free cash at the moment or this would be very tempting indeed.
If I have not had such an abysmal year financially, I would jump on it too.
Well the other side of the spectrum is they actually know the cars, which is worse IMO.
Case in point: I looked at a 6GT2 in Chantilly yesterday and the owner rushes right over to inform me they've taken it off the market "until further notice". Turns out they're just waiting to relist at $250K (from $150K).
BTW that one obviously didn't have the "tilt steering column"