Rebuild Engine or Buy Another Car?

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Have a 2009 Subaru Legacy which requires the engine to be rebuilt. Vehicle has 130,000 miles, decent interior and exterior. Cost is $6,500 to $7,000. Rebuilt engine will have 12,000 mile/12 month warranty. Can buy a 2012, with 101,000 miles for $8,900. Need input. Vehicle for college student.
 

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