I currently have a twenty six year old Farr 38 with a stuffed motor. One of the big end bearings is totally stuffed and has scored up the crankshaft. It has been recommended to me to bin it and install a new one (by a salesman of course) as to recondition the old is about half the price of a new. However, to install a new, the old engine bed needs to be cut out and a new one installed.....so the cost keeps going up.

After reconditioning I would still have an old motor!

Or after replacement I have new and reliable for many years but no money!

Anyone got any advice out there?

Depends what the make of the old engine is but generally speaking it is more economical to recondition than replace with something different.

Most yacht engines die from lack of use.

As it is a sail drive, replacement should be a relatively easy proposition. As it is a Volvo replacement is probably highly recommended.

A friend had a Volvo 2 cyl engine (possibly the same one as yours) in his Adams 31 (not a sail drive set up) that he grew to hate due to it's unreliability, outrageously expensive spare parts and lack of power.

He replaced it with a second hand marinised Kubota 3 cyl (heat exchanger cooling)that he is more than happy with. He bought it from Diecon Engineering in Brisbane at quite a reasonable price.

I had a Kubota 4 cyl in a previous yacht and I have to say they are a bullet proof engine. A 3 cyl unit say 20-25 hp would be an ideal engine for your yacht.
There are thousands of them around powering welding machines, lighting plants small tractors etc., so parts are plentiful and cheap.

Nanni Diesels are a marinised Kubota but I don't think their marinising is very well done.

Before you spend your dollars it would be worth your while enquiring with these two companies. www.marinediesel.com.au/default.asp and http://www.diecon.com.au/index.html I hope this is of help for you. Cheers.

Edit:- You may be able to get a Kubota that will bolt onto your existing sail drive. Like I said it is worth making the enquiry.