I've always said that once my motor/turbo/trans (sans clutch) goes I'm going to sell it. That most likely won't happen until 200k tho.....
Very sorry to hear about yours. Your mentality towards reducing your liabilities is very wise for what seems to be your financial situation. Your were talking about buying a beater before and fixing yours up? I think you should still buy that beater, sell your LGT for 5k, keep 1k and reserve for repairs, and the other 2k in your savings.
I used all of my savings to buy a house that I'm going to flip. Conservatively I will make 20 thousand on it in 6 months, and that number has the potential to be much higher. Great return on investment for a young guy like me that doesn't make that much coin.