Head gasket problem, do I need a new engine?

Late last year I bought a used '96 Explorer, 100,000 miles, Eddie Bauer edition, that I found from someone in my area selling it on ebay. I paid a reasonable price for it, as it was in good condition, nice body, etc. Now I find out I have a head gasket problem, and my mechanic tells me that its a very expensive job, and that replacing the engine (more expensive) would make better sense.

So far I have invested a lot money into replacing all 4 tires, getting a new alternator, and transmission work. It would hurt to have to get rid of the vehicle now, but I don't want to throw good money after bad.

Would it be possible for me to try and find a new engine on my own, in order to save money? I would assume there are mechanics out there who would only charge for the labor if this were the case? Any advice would be very appreciated.

Also, my current problems right now that probably led to the head gasket issue are I'm losing 1/2 to 1 full gallon of anti-freeze/water daily, white smoke is coming out of the exhaust for the first 5 minutes of idling, and brown sludge is on the radiator cap and in the coolant reservoir, and the engine idles roughly, yet my air conditioning is blowing ice cold, go figure?

Head gasket on my 98 went out around probably the same mileage. I just had the dealership replace the head gasket.
I'd just replace the head gasket, not at ford dealer though. They'll charge you through the roof!

Bump for some more replies and guidance please, all responses appreciated.

Not much guidance to give you besides replace that head gasket! Get a repair manual from autozone.

Next...why replace whats good? If your engine is running strong before the head gasket, then why replace it with something that could be worse (not as good)!?

you can do the head gaskets yourself in a weekend (maybe two) if you're somewhat mechanically inclined. a good felpro gasket kit (head gaskets and gaskets for other top end parts you'll remove to get to those gaskets) should be about 50 bux.

i'm sure you could also find a shade-tree mechanic (or kid who has some engine knowledge) to do it for a couple hundred bux as well.. i think $500 would be pretty fair. it's not an extremely difficult job, it's just a bit time consuming. i see no reason to replace the whole entire engine.

by the way, what engine does it have?

once you get the issues iron'd out, it should be a good vehicle for a long time if well maintained. my '93 needed new head gaskets a few years ago (150k miles). and it's been going strong since (218k on it now).

I did the same job to my 93 xlt, if you are talking 4.0 ohv. Its not a bad job to do your self. I had every tool to do it except a torque wrench so its wasn't bad. I had to do it because one of my lifters collapsed. I think with everything i did with the lifters, new push rods, coolant and gaskets i was sitting around $450.00. I would do the lifters while your in there. I got mine from stevens. Just remember to line your manifold gasket up correctly the fellpros come flat so i bent the at the creases to help it sit in there better. Hope that helps. Later.

i just had both heads shaved and tested with valve grind with the cost of 460 with gaskets, not to bad of a job just run into the exhaust manifold and pipe bolts frozen on and had to drill them out. just take your time when you start to assembly. good luck

I forgot about that, those bolt NEED some liquid wrench soaked on them for a couple hours. There a b to get out.

mine 1997 xlt need overhaulgasket set,timing lever tensioner and radiator,anybobody can recommend where to get the parts(i,m from Kuala Lumpur)Malaysia

No clue man.

maybe This is what you want to hear I have seen many problems with these but one possibility is a blown intake gasket .Like duder1 said its not a bad job so if your going to do it just start by looking at the intake gasket as a possible cause.the original gaskets were paper and ford changed to aluminum with rubber inserts so if your gasket is paper (BROWN in color) it may be your problem

Ghani said:

mine 1997 xlt need overhaulgasket set,timing lever tensioner and radiator,anybobody can recommend where to get the parts(i,m from Kuala Lumpur)Malaysia

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I would look in ebay. I find a lot of stuff i need for my cars there.