H2 is in the shop - just heard that I may need a new engine - although I haven't talked to the techs yet. 130K miles. Has always run well so not sure how I need a new engine all of the sudden.

Any thoughts as to what the best path forward is if I need one? Has anyone else had to do it? I have a GMC dealer working on it. New? Rebuilt? Costs?

 

"Has always run well.... I need a new engine"? More information needed!

 

Only you can answer your own question. Nobody can answer that for you.

You buy what you can afford.
If you can afford new, you have to ask yourself if the vehicle is worth it, depending on the condition of your H2.
There are $10K H2s and then there are $50K H2s. How much $$ do you want to throw at it?

If money is no object, throw in a "built engine". These vehicles are seriously under-powered, so that say extra 100HP for example, makes a huge difference in performance.

Also, mechanics like to throw words around, which do not always mean what you think they do.
A 'new engine" could be as simple as rebuilt heads. Or cracked block. 2 very different scenarios. Get clarification and accurate cost estimate.
Good luck.