Subaru outback 2013 Help ! Engine issue diagnosed.

My 2013 Subaru outback (94,000 miles) overheated and
engine / brake lights went on.they thought it was gaskets
possibly heads.  I drove minimally with it.

After going to a few mechanics and spending $ 400 on  
glass sealer, new temp sensor and a few other things, I got
a diagnostic  test at Subaru dealer.
Dealer analysis resulted in a recommendation of new  
short block and possibly 1 or 2 heads. Dealer wants from
6000 to 7500 for refurb per Subaru  short block  possibly
with 1 to 2 heads,depending on the condition of the
heads. Expensive fix. Car has 94k miles on it. Subaru of
America tells me I have extended warranty on
transmission for 100k   Miles or until 2023,whichever
comes first.Dealer option is pretty high but comes with 36
mo warranty.  I'm looking at  (1)putting in a used engine
with local mechanic,( how to tell if used engine is ok? ) vs
(2)buying a 2014 honda civic  ex with 80k miles from an  
individual seller, (one owner, all service done at dealer. No
accidents,clean title   for around  10,000.blue book
average value at 9,500. Needs 3 new tires.vs (3)  Honda
dealer who  is suggesting lease for 3 years for new honda
civic. I would appreciate some advice.