Replace '06 engine?

I have an '06 Eddie Bauer edition with 165,000 miles. I have just been told by a Ford dealership that I probably need a new engine (about $7,000). I'm getting a 2nd opinion tomorrow from another, non-Ford mechanic.

My thinking is, I will have a new (remanufactured) engine, so 0 miles on it, a warranty, and years more service. On the other hand, the vehicle still has a tranny and drive train with 165K miles on it.

So, my quandary. Do I pay $7K for repairs for an otherwise mechanically sound vehicle, or go $25K in debt for another used vehicle? (I won't buy new) Also, the dealer says the engine replacement is a worst-case scenario - once they tear the engine apart they'll know more about what repairs it actually needs, but they said I should prepare for the worst.

I've read a little about issues with the '06 5.4l engine. Some people recommend installing a different engine when a replacement becomes necessary.

My intention has always been to keep this vehicle as long as possible, but I never factored in an engine replacement.

Mechanically it's been a good vehicle with few problems and I'm **** about preventive maintenance. Last week I had the alternator and serpentine belt replaced at another Ford dealer. The alternator failed on me 200 miles from home and they advised replacing the belt at that time due to wear. I also have nearly $900 in new tires on it. Cosmetically it has mild hail damage and the famous tailgate corrosion started showing up last year.

So..... your thoughts?

What is the problem that made you take it in?

After replacing the alternator and serpentine belt, I wanted a full check-up on it. Basically a bumper-to-bumper look at fluids, filters, joints, bearings, whatever. It's been awhile since I had anyone look at it in depth (last time was 100K at a Ford dealer).
The dealership listened to a noise coming from the engine and decided that they shouldn't proceed until the engine issue was resolved.

I'd wait on the 2nd opinion and compare notes to what the dealer has stated.

Wouldn't hurt to ask the cost of reman engine/trans combo before pulling the trigger on anything.

Did you hear the noise? Can you describe it? I'm sure someone on the forum has had the same issue it might not be that bad.

Just a slight knocking/tapping noise. Doesn't sound like anything to my untrained ear.

Does it go away when warmed up? Is it just for a few seconds when it first starts?

No, it's constant. Maybe more pronounced when engine is warm. Also, engine uses oil. No leakage, but about 1/2 quart every 300 - 400 miles. Engine has been making the noise for a long time and I always attributed it to low engine oil so I always keep it topped off.

Oh jeezus - RUN AWAY from that dealership. These engines tick a little bit. Does the engine have good power? Does it get normal fuel economy? If the ticking is LOUD - like...a diesel maybe? I'd bet it's one of your spark plugs has backed out (happened to me). Two shops thought the rods were bent, one shop swore it was the Cam Phasers. a MIDAS of all places pulled the coil pack, saw the plug flopping around inside; replaced the plug and the truck is fine now.

wait for 2nd opinion and given that u wont by new...$7K is better that $25K over however many years unless you don't have the $7K...also...if able...try to do some of the repairs yourself...the alt and belt can be done in ur drive way with basic tools...if youre physically capable of doing it so if you don't have any medical probs you'd be good to go and we're more than willing to help guide you along with step by step directions and youtube is a great resource