Makes sense to sell the Corsa to me, buy the Fiesta from your father (he will appreciate the cash) and fix it. Cheaper than a new car and one less car to park outside your house too.
I had assumed your father was going to be driving soon though until you posted above.
Scrappage I disagree with. I am sure a 1999 Golf (T plate) does not need to be scrapped for example. They will still be pretty sound. Same goes for a lot of other cars.
But do check out recon engines. I had one in a Fiesta once and it wasn't a huge amount of money (hundreds but this was about 14 years ago mind) - they get your engine back as part of the deal. Then you'd keep the Corsa going instead.
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