If it was my block and I was offered a fair price and a replacement block.... by all means I'd do it... if I was pulling the engine anyways. The original block belongs with the car it originally came in... plain and simple. Who cares if it adds value to the current owners car... It isn't about the money.. right???? Fact of the matter is... once that block is reunited with that car.. they will never be separated again.
If the person in possession of the block was a true enthusiast and genuinely cared about these cars he would cut loose of the block. It sounds like the buyer has been more than fair in his offering for the block.... deceptive??... maybe .. maybe not.. Regardless.. the block belongs with the car.. The person in possession is pulling the engine anyways... no skin off his teeth in that aspect.
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 Current Pontiacs -
1973 Formula SD455 - #'s auto orig paint
1972 Trans Am - 4 speed orig paint
1974 Formula 400 - Ram Air automatic
1966 2+2 convertible - 421 4bbl automatic
1967 Grand Prix - 4 speed orig paint
1967 GTO - 4 speed orig paint 35k orig miles
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