Engine rebuild? 96 Cherokee 4.0 inline 6

The problems -

The front floor pans are shot, I took the passenger seat out because the rust ate up to the front bolts and there's no point in letting someone sit there if they're just going to fly through the windshield.

It needs a new radiator, a new heater core, the AC system looked at and fixed, a new water pump, and new hoses with the radiator changed. Possibly a new fan clutch.

The rear diff. leaks but I haven't driven it much so I haven't worried about it. It may be as simple as putting a seal on, or it may need to be fixed.

Transmission needs to be flushed, checked out, clutch probably needs to be replaced. Who knows when the trans was last serviced at 240,000 miles.

I've gotten all the brakes done, did a tune up, and I enjoy driving it. I've spent about $300 so far. I'm guessing I'll spend around $1500-2000 to rebuild the engine, bring it to base and drop it in, fix all the minor problems with rebuilding engines, and putting the new radiator, hoses, and water pump in. I bought it for $1400.

Here's my situation - I'm moving, and I have the use of a truck and a trailer to move. Where I'm moving to has great public transportation, and I live within biking distance of most everything. I was already planning to just park it in the back and work on it and save money by using the bus and my bicycle. I don't NEED a vehicle right now, but it's nice to have one. I can either start working on the engine and all the problems right now as I can, or I can save up for a newer vehicle.

What would you do?

You do have a few projects ahead but if it's work you can do yourself, you can keep the cost to a minimum. Labor cost is what kills you at the shops as well as parts being marked up.

As for the engine rebuild, I would very seriously considering finding a replacement engine from a salvage yard. Find the lowest mileage one that will fit. There were a lot of XJs manufactured and if you look around and use the "locate" service from the salvage yard, you should be able to find one.

Salvage yard engines are plug and play. Should come with a warranty that the engine runs well but that warranty does NOT include the labor if you are unlucky and get one that is troublesome. In 35 years, I have purchased 4 salvage yard engines and all of them were inexpensive and ran perfectly.

If you do decide to rebuild, there are a number of reputable shops that will ship you a completely remanufactured engine with a great warranty for around the $1700 mark give or take a bit. Toss the old engine in the crate and ship it back. See if there are authorized repair centers nearby that will take care of any issues you might have or that can handle the replacement.

Also get a couple of bids from local builders (be sure they SPECIALIZE in rebuilding engines) that have been around for a while. The nice thing about using local expertise is that it is easier to get things resolved when you can talk to them face to face instead of dealing with a customer service rep on the phone.

Learn the difference between "rebuilt" and "remanufactured" and be sure that you are comparing apples vs apples when getting bids. Rebuilt can sometimes include replacing components only to the level of failure. Remanufactured is generally much more comprehensive.

I don't have much experience with mechanics, but I can usually catch on real quick. The good thing about the mechanic shop on base is that they charge you $3 an hour for the bay or the lift, all their tools are spread out for your enjoyment. Professional, certified mechanics are there to help you, teach you, show you what to do. I was over there in Oct. doing my front brakes, and a guy had a very nice classic car in a bay and they were dropping the engine in, so I know they can help with that kind of work.
The bad thing about the mechanic shop is that I have to have the Jeep towed over there, which is expensive. To have it towed 15 minutes from the house was $50.

Personally I love XJ's and have bought and repaired a few. You shouldn't have to spend too much just rebuilding it yourself. You'll just have to do the labor, pay for the machine work and a few new parts.

That reminds me I need to start working on that 91 sitting in my driveway I bought for $500.

I called a Jeep salvage yard, and they want around $700 for an engine with 150k. Is that a decent price or are they out of their minds? I can buy a brand new one for $1500, but is 150k worth spending half of that on? It is just under 100,000 less than the one that is currently sitting in there.

I've always just bought small parts and body things from salvage yards, so I have nothing to go on when it comes to engines.

I'd think you could get one with lower mileage. The rebuilt one will have a better warranty. Do what you feel comfortable with.

$700 sounds a little high for one with 150k, but its been a while since I bought an engine. If that is the going rate and you can afford a remanufactured one, that might be the way to go. Jasper and others offer a pretty good product. SEARCH for other good vendors.

i'd sell it and spend that $ on another XJ that is in better shape. 99% of the time its cheaper to buy one that is in the condition you are trying to make the shot one you have already.

I just sold a 95 4.0 w/205K for $120 on Tuesday. Of course today I found a 98 in good body condition that needs an engine. The JYs I go to sell engines for $200(just make sure it doesn't have a CFC tag or orange paint on it).

I am your typical female who knows jack squat but would like to learn. JYs, CFCs, orange paint, I'm not even sure why my Jeep is referred to as a XJ! All I know is how to insert slot a into tab b, follow common sense, and read the manuals and directions. And I'm really handy at tune ups and oil changes...

Is there some kind of lingo dictionary around here?

It sounds like you would enjoy working on your XJ. I would just question putting more into one that the floor is rotten out on.

I would sell it and move on. My '87 was in almost the exact same condition when I bought it, almost the same problems, I actually probably had a few more. I took me almost two years of fairly constant work to get my XJ in good condition.. as far as paint and drive train, A/C etc. I bought it for $500 and I easily have $1500 invested in it. I did ever piece of labor myself, I also used a ton of used parts. I cut ever corner, and saved every penny possible and I still spent a ton.. considering what the vehicle is worth.
I did learn a lot, and it was somewhat a labor of love.. but having said that.. if I could go back, I would have just bought one in better shape and spend the money up front.

See pics of the work here:http://s192.photobucket.com/albums/z303/stephenspann27/87 XJ/

Well the problem is solved. It's most likely been stolen, most likely illegally crushed, and most likely the people who stole it made money off of it. That area of SC is notorious for crooked people doing crooked things. I know several people in that area that have had their vehicles stolen in broad daylight with security cameras in the parking lots.

I've got full coverage so it's up to the insurance to decide what to do now. I'll definitely be buying another Jeep, but now I know what to look for!