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Rebuild the current motor.
That said, no matter how nice the car is or how well maintained it is there will be a point where your maintenance dollars exceed the car's value.
Take a second to think. Is the fun you get driving the car worth taking a loss if you ever sold it?
I am into my car 13x what I paid for it. I have spent $35 today for some switches and lightbulbs. I am going to put another $1000 or so into it soon for paint, and I haven't decided what to do for the dash yet. Since my car has been crashed before it is nearly worthless in terms of resale.
But it's 100% worth it.
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