If it needs a new motor, it's NOT in good condition. That's like saying your grandfather is in great shape, but he needs a heart transplant.
A 2000 Toyota Corolla goes for around $3200 according to KBB and Consumer Auto Guide.
Considering that a new motor from the dealership will cost you nearly the same, the value of the car is a complete wash. Basically, the new owner will need to sink $3000 into it (conservatively....my Toyota engine was $4500), on top of whatever you want to charge for it. So their total investment is closer to $8000.
Or, you could get the engine rebuilt, which will cost around $2000. At this point, the car is still only worth $3200, but you have a much better chance of selling it.
Or, you can get a used engine, which will cost around $1400. But the rest of the car still has 190,000 miles of wear and tear on it. That's almost double the normal miles a car accumulates per year, and that's going to quickly require other parts of the car to be replaced.
Actual, logical value of your car is somewhere around $1000. Considering the large investment it will be for the new owner. Don't be surprised if you get offers for less than that. The bottom line is that it requires a new engine, and has far beyond a normal amount of miles on it....that's not going to make it valuable to anyone.
