I need advice re new engine in 05
 

Hi all, i have a seized 2.7. It was run with a large hole in the oil pan. Insurance has denied my claim stating the coverage ended at the point of the collision and mechanical failure occurred after continuing to drive. So I went out and bought wife a new car and I am left with this 05 in great shape with 70000 km on it. Dealer will put a short block in it and give a 130000/3yr transferable warranty on it for $5500. Or put a used engine in it with 48000km on it for $3500 then I am assuming I would own my old engine. Are these my 2 options or can something be done a lot cheaper? I just want to get the car running properly to sell it.

Thanks John