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One more "outside the box" thought, since the car is still running, maybe you could try to hang on to it for another 6 months to a year by drastically reducing the mileage you are putting on it. Carpool with friends and share the gas, work public transportation into your daily routine, and walk when possible. This is definitely more inconvenient, and it may not be realistic depending on where you live or what kind of work you do. If it is possible, you may find that you can extend the life of your existing car for long enough to put the time into hunting out a good deal. I did this same thing about 20 years ago when I needed a new transmission, and was able to put it off for over a year, but it took a big adjustment on my part.

Sorry to hear about your troubles with the pontiac. I agree with the others here. $3,000 is a lot to drop on that vehicle. I suppose if the rest of the car is solid you may consider just replacing/overhauling the engine, but that may not be the case. There are good deals on used cars if you are willing to really search them out. While I am sure it is frustrating, you will likely get better bang for your buck by putting your money toward another vehicle. Good luck.