I wouldn't buy a rebuilt motor. I was considering the same thing when I lost my #8 cylinder, and I'm glad I decided to pick every single part that went into my 306, that started with a bare block and crank. If you can't/don't want to pay for that sort of work, I'd at least have a motor rebuilt by someone you trust.
To my knowledge, they are allowed to scrap cars that are involved in fatal accidents after the police report has been filed, or after any litigations are final.
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