[K2j2]

I'm the original owner- it's well maintained, with stock engine and was never driven in an abusive way. Heck, I'm a 50+ mom who just loves this car... my son says I should drift it LOL. Anyway, I digress. Was running great and I suddenly started to hear a rhythmic knocking that worsened on acceleration. Stopped at a light and it just died. It's at the mechanic's now (who I trust dearly and he's thinking it's not looking good, on cursory review). It only has 50K on it and of course I still have a few more payments to go (bought out my original lease). So in a worst case scenario- are any of these options reasonable: 1) reach out to Subaru to see if they'll stand behind their engine and work with me since it's under miles, though out of warranty by a year, 2) suck it up and replace the engine or 3) try to sell as is and if so, do you think I'd get decent money for it. Appreciate any advice.