Last night as I was driving I noticed a sudden drop in power, and a big hiccup from the motor. After that the motor died, and I coasted into a parking lot. The starter clicks, but the motor won't turn over. I checked all the small things that I could in a parking lot with a hot engine. Accessory belts are fine, plenty of fuel, no leaks of fluid, tranny seems fine, plenty of oil, not overheating, no CEL or dash lights.
The car was towed to a local mechanic where I am waiting for a diagnosis. I am assuming the timing belt snapped on me. I know that this means a rather large repair bill. The worst part is that I just had the heads machined and new valves put in a year ago. At the time I did not have the mechanic change out the timing belt, as the small dealership I bought the car from specifically said they replaced the belt and water pump (about 28k miles ago if they told the truth).
If it does turn out to be that I need new valves, pistons, etc.. what would be the best option for reliability and price. Would it be better to get a rebuild kit and have everything replaced/machined as necessary, or finding a used engine to swap in? Having bought the car 2 years ago I owe more than I can get selling it with a seized motor, so I would like to fix it and keep it.
If it helps I have an '02 wagon, 5speed, stage 2 Cobb OTS, Invidia catted down/Borla Hush 3" cat back, Cobb SF intake, 122k.