Hi Gus,
A hole in the valve cover from the valve by itself does not condemn the engine engine. However, the question is, how did the valve make the hole in the valve cover? My guess is, there is further damage done to the piston which is the lower part of the engine. The valve is in the upper part or the head, and the piston is in the block. If there is damage to both the upper and lower engine, then yes. A rebuild of this engine or a replacement engine is needed.
To answer your other questions. A rebuilt engine is just an engine out of someone else's vehicle that someone rebuilt. This could be an individual or a company that rebuilt it. A re-manufactured engine, is a general term that is used when a company takes an engine out of someones car and rebuilds it and then sells it. They usually include a warranty to back up their work. These are companies like Jasper or Tracy Industries. Used engines is another term that usually means it is an engine out of a vehicle that has been totaled, like a junk yard engine. This means they literally pull it out of the other vehicle and put it in yours. Maybe they change the oil but they do not take it apart so you don't know what you are getting.
Used engines from junk yards are the cheapest but riskiest. Rebuilt engines are usually the next cheapest but also risky because you are dependent on the skill of the person rebuilding it. Re-manufactured engines are the most expensive but least risky because they usually come with a warranty.
Let me know if you have any other questions. Thanks
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Wednesday, April 24th, 2019 AT 6:24 PM