So I have an 05 Ford Escape Hybrid that needs a new engine. $8000!! the NADA value is $7000. I owe $9,300. I have no idea on what to do and need to know my options!
Help Please!
New engine on fordparts.com is around $4400.00 it seems. I didn't look hard enough for other sites/reman/rebuilt motors. You have options. Credit is for emergencies like this. Perhaps you could get a personal/home equity loan at a low APR to help wtih this repair. If not; you have your credit cards. House and Vehicle; only two things in life that matter a lot. Obviously health/family/children take priority too.
http://www.car-parts.com has quite a few used engines for you. There's also LKQ. I'm in the Tampa area and I know of quite a few down here if you're nearish. Let me look up in alldata what the overhaul labor time comes out to be for you.
Labor will be about 12.8 hours for a manual and 13.1 hours for an automatic, I am assuming it's a 2 wheel drive. If it's a 4 wheel drive, 13.6 hours for manual and 14.3 hours for automatic.
A good mechanic I know only charges me 55/hour. But local Ford dealership charges 105/hour. So assuming you get the engine for about $2000:
55/hour: 2WD - Manual $704.00, Automatic $720.50
4WD - Manual $748.00, Automatic $786.50
105/hour: 2WD - Manual $1344, Automatic $1375.50
4WD - Manual $1428, Automatic $1501.50
So between $2700 up to $3600 when all is said and done. It may be more or less depending on mechanic you use or how much your local dealership charges. I know my local dealership will let you buy parts and they'll charge labor to put them in without a warranty. I am not sure they'll swap an engine if you provide it though.
That's the best educational guess I can give you going by all data and mechanic/ford dealership near me. If it's a vehicle you are going to run into the ground and you never plan on purchasing another one for a long time; it may be worth investing in. If not; maybe trade it in and see if you can get some value out of it perhaps. Also see what other vehicles for your year/mileage are going for on KBB, NADA and Craigslist.org
Now, if you had a little bit of money; you could get a used engine, get a master rebuild kit, have a machine shop go through it and hone/check everything and then have a mechanic rebuild it. But like I said it all comes down to what your future plans are for the vehicle. Plopping a used engine works too. You can always rebuild it later down the road. I am sorry about your engine though 
Good luck!