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Had my 2004 996 C2 towed to the shop after I heard a noise from the engine and it quickly stopped running. The diagnosis from my mechanic is a blown engine. There is lots of metal in the oil but apparently it is not the dreaded IMS failure (had IMS upgrade by LN Engineering installed 2 years ago). They haven't taken the engine apart so I am not sure exactly what failed.

The car has only about 65,000 km on it and it was well maintained.

Both street and occasional track driving.
Anyone know for a good used engine? (in Canada preferably)
Any guesses as to the value for the car as is? It is in great condition other than the (worthless) engine.

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I'm sorry to hear it.  A couple thoughts.... before you scrap the engine it would be worth knowing what happened.  What kind of metal is in the oil?  Small bits of ferrous metal?  Given that it's not the IMS bearing, I'm wondering where it came from.  Without knowing anything more, I would agree though that when there's metal in the oil the engine is usually toast because it's hard if not impossible to flush it all out.  I'm not familiar with the market in Canada but in the USA there are numerous companies that buy wrecks or cars such as yours and part them out.  I have found their prices vary widely and it's all about what you can negotiate.  You would want to do your own due diligence but my guess is the car wont be worth too much without an engine...I would think a few thousand bucks if it's in good shape and not much more....

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