FMV question SX4

So...

Since my son ran his SX4 low on oil and toasted the bearings in addition to totaling the 98 Ram I am pondering what to do with the SX4. 

My son is fixing the Ram, and I was planning to sell the SX4 to get it out of the yard. Then I had an idea that maybe the SX4 should be patched up and made into a race car (challenge, auto cross, rally cross)

Now the issue with the challenge is we originally paid $2500 2 years ago. It's a 5spd all wheel drive, with a perpetually lit CEL for the downstream O2 that went away long enough for it to get inspected, but returned shortly after. 

In the time he's had it he managed the following:

- rear end someone taking out the bumper, radiator, condenser, etc. patched up with junkyard parts. 

- transmission failed destroying itself. Fixed with a JY transmission and a new flywheel and clutch (standard issue oem equivalent)

- run it low on oil to ruin the rod and main bearings 

The question becomes, can I use FMV for it since I'm taking it over from him in its current condition (needing engine), or am  I locked into the $2500 from when we originally bought it for him? Therefore not challenge eligible.

I don't think it helps my case, but I found a parts car with a good engine for $1k for it.

Here's some photos of it as it sits today:

$750 car if you ask me

I wonder how hard it would be to get the 2.3 out of an Aerio and build some kind of mutant Suzuki motor using bits from the 2.0 in your care and the 2.3 bottom end.  Then bolt that into your SX4 with a Megasquirt controlling things and then you add a turbo.  In theory it should be easy!

I think your car is closer to $500 than $750 myself as these things aren't exactly high-value propositions in excellent condition.  Mint with 100k on the clock it might be worth, what, $3k?

In reply to pres589 (djronnebaum) :

Just bolt the whole engine in and be done. No mutant needed. Both j-series Suzuki engines. 
 

as for value, non running I'd agree with michael at $750. 

Didn't know if the 2.0 in the SX4 had a better head than the 2.3. 

One of these with AWD (I don't know how great for performance this system is in these cars) with the five speed trans and ~250 hp should be pretty fun. 

Hmm...I may need to keep it around.

Now to start planning how to sell the idea to swmbo. 

Last time I drove one of these it would fully spin both inside tires in a right turn on street tires. Really needs soem type of LSD or locker. 

admc58 said:

Last time I drove one of these it would fully spin both inside tires in a right turn on street tires. Really needs soem type of LSD or locker. 

"It's about to flip - give it more traction!"

Naturally.