r/r = remove and replace.

Check an independent shop OR if you go the crate engine, some of them have a relationship with someone local.

$8K is too much for the engine, especially stock. $2500 is VERY steep for a tranny too. Find out what's wrong with BOTH of them first. Even allowing for installation on both - it's very steep.

Going with what '98 said earlier, you can rebuild your engine. The 5.9 is a good basic engine to rebuild. You could pull it, break it down, then take the parts to a nearby machine shop - they'd do most of the work. Then you just put it back together.

If you're handy with tools at all it's a great option. Even if you had to rent something to drive for a week or two it might work out cheaper.

 

Have a shop get you an detailed estimate of what is wrong and needs done then go from their.

How is the compression? You may just need the heads rebuilt

The engine R/R I'm talking about is they do an in car rebuild of the engine it entails only so much being done heads redone pistons pulled piston bores cleaned up new piston rings its not a complete rebuild just the basic needed things fixed back to like new. But how well it works depends on the crank bearings and seals being in good shape as the crank is not removed.

Its a simple rebuild but should get you a well running strong engine back at a low cost.

I'm not sure it can be done on a Dakota but worth looking into.

 

I did a bunch of research on engines, etc. earlier this summer. I do all my own work (except rebuilding automatic trannies) and I am really, really cheap.

I would never do an in frame rebuild on a 4wd Dakota. There really isn't any reason to--it requires that the mechanic remove the front differential (axle) to get to the underside of the engine. Lots and lots of extra work. AND, an in frame rebuild doesn't allow for hot tank cleaning and magnifluxing the crank and block--important if you plan on keeping the truck and having a good outcome.

You can get a Marshall long block crate engine for about $1700 plus shipping, and they pay for the return core shipping. It's equivalent to a new engine--refurb'ed crank, new cam & lifters, all new bearings,seals, oil pump, pistons, rings, refurb'd rods, yadda yadda. From Rock Auto--be sure to use the 5% discount. They sell remanufactured transmissions as well.

The nice thing about a crate engine is that it can be sitting in the shop when you bring your truck in--cuts the downtime by at least a week. You want to be sure that the shop will steam clean your old engine parts before they start putting them on the new short block--your new engine should be clean as new--and be prepared to pay for a new distributor and waterpump--might as well while the engine is in pieces.

I'd have a trannie shop rebuild the transmission, new seals all around, of course. Or get an exchange transmission & have the transfer case resealed.

$10,000 is just crazy. By like $4000? That amount of money would buy you a newer, younger, lower mileage Dakota (or some other truck.) The "Speed Shop" is way too expensive, it really does pay to shop around.

Too bad you can't do the work yourself. The money we save doing our own work is like tax free money in our pockets!

 

Thanks for the input Brian. I'm sure the OP and many others will find it helpful.

 

A reman engine is NOT the same as a crate engine. A crate engine is BRAND NEW in every aspect while a reman is a REMANUFACTURED engine. A crate engine is around 5K for a 4.7. I only know the price of a 4.7 from the local dealer because I almost got one back at the beginning of the summer.
A reman is a fine way to go, but the two terms "reman" and "crate" are not the same and get very different prices.
If the OP's shop was getting a "crate" engine then that could easily be half of the 10K quoted. And would put the price quote more in line.

 

There's some questions about the terms.

Rebuilt: Parts are replaced only as needed within "wear" limits. Parts that are serviceable are cleaned.

Remanufactured: The engine is gone through and brought back to the same specs and dimensions it had when new. All new parts are used. It's as close to a new engine as you can get.

Crate engines can be new or rebuilt/remanufactured. The engine is ready to install out of the crate.

 

Hmmm, I agree that a reman is as close as you can get to a new engine, but it was always MY understanding that a "Crate" engine is a 100% never run, brand new parts engine

 

Here's one for an example: http://www.rebuiltcrateengines.com/

Don't forget, there aren't many 4.7 cores out there. It's pretty hard to find one in any condition.

 

You're right and I misspoke.

A remanufactured 5.9 magnum engine is an good affordable alternative to a crate engine, tho. And most of us with GEN 1 & 2 Dakotas are interested in bang for the buck rather than brand-new-that-you-can't-usually-tell-from-remanufactured.

And, as the 5.xx magnum engines have been out of production for some years now, a crate engine is going to be, by definition, new-old stock. Is there a difference? Yeah, sure. Is it worth another $3 grand? Guess that all depends. . . Is the speed shop gonna make more off a crater than a reman'd? Duh?

And my statement that pumping $10 grand into a 12 year old truck is crazy still stands.

 

Oh Im certainly not arguing with you. A reman is definitely the "best bang for the buck". I was just saying that iF the original quote of 10k included a crate engine it would be more in line but definitely not for a reman.
And whether or not putting 10 grand in a 12 year old truck is worth it depends on a lot of things. It kinda boils down to how much the OP likes the truck and whether or not he thinks its worth it.