Did they bother to diagnose (or tell you) why the #1 cylinder is "dead"? If it's a bad camshaft ...not unheard of when the problem is #1... resulting in burned, cracked or broken valves, then it might just need "a valve job" for half of what you were quoted, or less.
The going price for a used E engine with low-ish mileage seems to be about $1800 from the breaker yards. Figure ~$200 to ship, and you can easily see that the dealer is wanting $2000 to execute the swap. That translates to about 20 hours at a typical shop rate of $100/hr. If it takes a dealership mechanic 20 hours to do an straight out/in engine swap like this, then he/she needs to feed his/her ASE certificates to a shredder and just get out of the business. A pro experienced with the vehicle should be able to do this in a single shift, +/- a couple of hours dealing with surprises.
$3000 to 3200 and you have a deal.
The going price for a used E engine with low-ish mileage seems to be about $1800 from the breaker yards. Figure ~$200 to ship, and you can easily see that the dealer is wanting $2000 to execute the swap. That translates to about 20 hours at a typical shop rate of $100/hr. If it takes a dealership mechanic 20 hours to do an straight out/in engine swap like this, then he/she needs to feed his/her ASE certificates to a shredder and just get out of the business. A pro experienced with the vehicle should be able to do this in a single shift, +/- a couple of hours dealing with surprises.
$3000 to 3200 and you have a deal.