what to do? you might want to know something about cars to read this...

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in april of this year i bought a 1997 Oldsmobile eighty eight. i got a loan for the car and i still owe 900 dollars on it. since april i have put over 500 dollars worth of parts in the car. it has been one thing after another. pretty much everything in it is new. a few weeks ago my fiance was driving it and it over heated, he pulled over to let it cool down and it stalled and died quietly. we thought it was a cracked head so we ripped the engine apart... turns out the one cylinder has a hot spot. so now i have a choice... i can buy a used engine for the car for around 220 dollars.... or... i know a guy who has a 1995 honda civic, he was telling other people he wants 1200 for it. i can do that... BUT... he told me the only way he will sell me the car is if i give him the oldsmobile plus just over 900 dollars for it. i have a problem with this because my original plan was to buy the civic and store the oldsmobile while i saved money for the engine because the body on the oldsmobile is in GREAT shape. the guy happens to be the guy who has done most the work on my car so he knows all the new parts in it. he says he wants to junk the oldsmobile for the 300 dollars and then knock that off the price of the civic... but i can bet he wants to strip all the new parts off of it and sell them then junk the body of the car... i NEED a car, and everyone including the people who loaned me the money for the olds is pushing me to get the civic and just get rid of the olds. i think thats what i am going to do unfortunately but if i do i AM stripping all the new parts out of it and he will get over it. i just dont know if it is worth it. i need opinions. i like civics and all but i just dont know. do you think i should trade him my oldsmobile plus 900 dollars on top of that for a civic? do you think it is right for this guy to be willing to sell the car to others for 1200 but refuses to sell it to me unless i give him my car? do you think i am right for wanting to take all my new parts out of the oldsmobile if i do give it to the guy?