I think Mike trying to fix the car totally make sense.
The same situation happened to me last December. I hit a deer. Insurance Co adjuster determined it's a $2040 loss. My deductible is $250. With most factory parts from Tousley Ford (much cheaper than listed on the adjuster's estimate), and some parts Mike found for me from the junk yard, Mike and I spent one evening to restore it to pretty good condition. Of course I didn't get the car repainted. However, the adjuster only allowed the hood, both fenders to be repainted and the body shop strongly recommend against that. They recommended a full car paint because otherwise 1 year later the car will look terrible with different hue/color at different parts. So I pocketed a good $1100 toward my full car repaint fund. Or simply my turbo fund. :laugh:
So if Mike and his dad can restore the car professionally, why not pocket the change for the later improvement? From the look it will definitely be more than my $2040 loss. So he may be even get a new 3L put in for free? :laugh: