2012 Outback 2.5 warped heads - needs motor

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Our 2012 Outback Limited started overheating. I had it towed to the dealership and they just called and said the heads are warped and the lower end might need work too which would cost more than replacing the motor. They recommended putting in a used motor @ $5470. My wife and I aren’t sure what to do. We just got the car last year for around 10k and it has around 150,000 miles now.

Is that a fair price to replace the motor?

Would it be better to sell the car as is and take a loss?
 
Just did a quick search for used motors on car-parts.com. Found several motors near me with 70k for around $2,500.
$5,200 seems a bit ridiculous.
 
Just did a quick search for used motors on car-parts.com. Found several motors near me with 70k for around $2,500.
$5,200 seems a bit ridiculous.
Figure about $1000 labor to get it installed and running.
 

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