Thanks a lot to everyone, CEGers are awesome. All of your advice was very helpful. As it turns out, he saw that the nearest replacement to my car was some private deal selling for $9,500 (didn't even have the miles posted) and he also saw that my SVT would get me around $7500 in his little book.

So, he decided they'd try to fix my car. Total: $3500 est. for parts including anything he didn't catch that needs to be done.
As a side note the appraiser concluded that Contours are incredibly tough considering how much damage my rear bumper did to the Volvo..
-Alex