I am in the same boat. Which is better? TMCC or PS3?
Is it cheaper to buy a new engine?
"Better"? That's a dangerous word. Both work; I do TMCC and upgrades (TMCC) from Electric Railroad (ERR; 3rd Rail now sells them).
If you run conventionally, a simple reversing unit will get you back on the road. No sounds, but such is available.
Buy a new loco? Depends, of course - these days some things are so cheap that it might make sense, but an ERR Cruise Commander is not hard to put in, and some guys offer an installation service.