if you can get the car for under 9k, I would do it because the 2gr engines are around 3-5 grand. is250 (4gr fse) engines can be had for around 1500 and are a dime a dozen but 350's are twice the price and not as frequently found. but like the above said, they can be had for around 4k shipped. Plus labor and install would put you at another 2 grand leaving you at a grand total of around 15-16k which is what you would probably pay for one anyway

I would lowball the **** out of him for the car with the damage.