If you did not misrepresent the motor or make any guarantee then you owe him nothing...
IF that is the case AND you choose to give him anything it would be an act of charity.
If ANYONE should have enough sense to compression test an old motor BEFORE buying the dealer should. Sounds to me like he gambled. Maybe a reason he has struggled.
I've seen a few occasions where a dealer assumes they are getting one over on a trade in (ie buyer doesn't know what they have) only to get upset when they realize they are getting junk just like the buyer said.
That said..... I suppose that IF you choose to help him out you could give him some cash and take the motor back n part it yourself.... It's admirable that you care.... Not many do anymore.
You HAVE de carbed it right... If not compression MIGHT come back.
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