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I am told by a service person that my compressor is out. The coils are freezing up on the freezer side. When they get frozen we have to turn off and let defrost, then turn back on and it will work. We cant afford a new refridge right now. We are told the compressor is bad and cost about $800.00. Any recommendations? The refridge is 36" wide. Any used products out there or scratch and dents?

[COLOR=“Blue”]I am told by a service person that my compressor is out. The coils are freezing up on the freezer side. When they get frozen we have to turn off and let defrost, then turn back on and it will work.[/COLOR]
Sounds like you are being sold a bill of goods.
If the evaporator coils in the freezer are frosting up your compressor is OK.
By the sound of it you have a defrost problem.
Frost and ice are building up on the evaporator coils to the point where the freezer fan cannot pull air through them and therefore cannot cool the air.
This can be caused by the defrost heater, the defrost thermostat or the defrost timer which may also be the main control board depending on the unit.
Note: the heater and thermostat can be checked with a meter.

Any recommendations?
Here are a couple good sites with fridge troubleshooting/basic info
http://www.applianceaid.com/frig.html
Refrigerator Repair Guide: How To Fix a Refrigerator - ACME HOW TO.com