Coolant leak, first head gasket replaced, now engine?

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My 2009 Leon FR 2.0TDI started leaking coolant right before it was due to have its cambelt done for a 2nd time (120k miles). I took it for the cambelt and told them it was leaking coolant so they could have a look.

Attempt 1: Cambelt, water pump & full service: £510

After this, the car was still leaking coolant. Garage took the car back and diagnosed a head gasket failure via pressure tests (my guess is that the original coolant leak either wasn't really looked into, or was assumed fixed once the water pump was replaced).

Attempt 2: Head gasket replacement: £650

After this, the car was still leaking coolant. Garage took it back and the manager (who has been lovely throughout and very apologetic) drove it for several days without it leaking a drop. Replaced some glow plugs as the car was starting incorrectly, then gave it back.

Attempt 3: Glow plug replacement: £60

After this, the car was still leaking. Upon returning and discussing I realised that the manager had only been driving it locally, so hadn't exceeded 30-40mph, whereas I drive it mostly on the motorway. Armed with this information, they then took it back and after a day, diagnosed a likely crack in the engine block.

Attempt 4: Engine replacement: TBD

I'm waiting on prices now while they source an engine, but clearly it's not going to be cheap. I can understand the garage not knowing the engine block was gone prior to replacing the head gasket (or rather, seeing the head gasket was gone and just assuming that was it), but I'm understandably peeved, as if they had said up front "It's going to cost £3k to fix" (for example), I probably wouldn't have bothered (car is only worth about 3k). However, I really don't know a great deal about cars, and clearly have the (huge in this case) benefit of hindsight.

What I'm wondering here, is where the cut off point is. If the engine will cost £2k to replace, that puts me up to £3k AKA the value of the car, and I'd consider writing it off. However, the car is brilliant, and I could definitely see it lasting to 200k miles (which I would gladly keep it for), so the £2k may actually be worth doing. That said, even if it will only cost £500, I'll still have that nagging feeling of "the innards of this car have been ripped apart" every time I'm driving it, and I've no idea whether this will make it more or less likely to fail over time?

The garage in question is reputable, not a dealer but likewise not a local fella with a few tools, and despite all of the above still give me confidence every time I speak to them...
 
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Interesting trick replacing spark plugs in an engine that doesn't have any. I presume that they instead replaced a glow plug?

I doubt the block is cracked. That's a very uncommon failure. Have they actually done any diagnosis, outside of the claimed pressure test? Think I'd be looking elsewhere...

Probably a pinhole leak from the radiator, or an EGR cooler issue, I'd have thought. There's probably a few easily identified common failure points on these.
 
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These engines have a fairly common issue of leaking coolant via the EGR valve.

Early engines had problems with coolant leaking from the head but that was from new rather than developing a leak @ 120k
 
Have they not done a pressure test? Thought that would produce the conditions to show where it is leaking from.
 
Armed with this information, they then took it back and after a day, diagnosed a likely crack in the engine block.

By the sounds of that the garage aren't 100% certain there is a crack in the engine block. So you could be spending thousands on a refurbished engine and still not have it fixed.
 
Why are they replacing spark plugs on a diesel?
Interesting trick replacing spark plugs in an engine that doesn't have any. I presume that they instead replaced a glow plug?

Apologies, I did indeed mean a glow plug.

I doubt the block is cracked. That's a very uncommon failure. Have they actually done any diagnosis, outside of the claimed pressure test? Think I'd be looking elsewhere...

Probably a pinhole leak from the radiator, or an EGR cooler issue, I'd have thought. There's probably a few easily identified common failure points on these.

These engines have a fairly common issue of leaking coolant via the EGR valve.

Early engines had problems with coolant leaking from the head but that was from new rather than developing a leak @ 120k

I've read online a fair few times about EGR issues, this may indeed be something to look at.

Have they not done a pressure test? Thought that would produce the conditions to show where it is leaking from.

They have mentioned doing several pressure tests, on what, I have no idea.

trade that sucker in, get rid.
I doubt anybody is going to give me anything near what it's worth given its problems, and I'm not the type to try and trade it in without declaring them.



One thing of note is that they've offered to pay to have it taken somewhere for a 2nd opinion, so I'm tempted to take them up on that and take it to a local VAG specialist (though I've never used them before).
 
If they are offering to pay for a second opinion, then surely that's your best option for now. At least you will have two opinions on what the issue is and potentially two different costs for the repair, then you can decide whether repairing is worth it.
 
If they are offering to pay for a second opinion, then surely that's your best option for now. At least you will have two opinions on what the issue is and potentially two different costs for the repair, then you can decide whether repairing is worth it.

Yep definitely, they made this offer at the end of the last call, so just making sure I'm armed with as much info as possible for when they call back with an engine price.

did analysis show coolant mixing into the oil ?, if not have they dismissed heater matrix

From what I can remember, they said there was no sign of coolant / oil mixing
 
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