Q: What can be done with a great low mileage engine in a car body that's 30 and falling apart?

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Is it possible/practical to transfer into a newer car?

My car has 120000 miles.
My car has a manual transmission.

It may be possible to find another 1986 Mazda 626 that has a good body but a bad engine to swap it into. Other than that you could potentially sell the car for parts as the turbo motor may be needed by someone.

If you decide to swap it to another car, I’d suggest having a pre-purchase inspection done on it to assess the condition of the car and help ensure a clean installment. Best of luck.

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