Engine Knocking (r52)
 

I have a 2005 Mini Cooper S JCW and it recently started burning oil which lead to the engine knocking. When diagnosed by a mechanic with a stethoscope he mentioned that it is an internal engine problem and could be a loose bearing and therefore declared totaled. I have no experience doing major repairs such as this on any cars and I was wondering if anyone has any ideas on how I could fix this without replacing the engine because the current engine has only 63k miles on it? Any help would be very appreciated.

There's too much carbon in the engine, right?