What Should I Do With My Car?

I have a 1996 Toyota Corolla. It needs a repair that would require taking out the engine. BUT it has new tires, breaks, stereo with ipod hook up, satellite radio and modified lights. I don’t know if I should put money into the car in hopes of selling it for as much as I can…..or if I should just junk it as is and get like $500 bucks for it. OR should I try to sell it on Craigslist…Either way I want to put the money down on a newer Corolla type S. What should I do?