This would not be just rings. Rings do not tap, and rings do not make white smoke. Rings make smoke that is often described as blue, even though it also has some white.
White smoke, on the other hand, usually is a LOT. and quite visible and thick. Some say it smells sweet. This is coolant in the combustion chamber....
I sugges that the tapping be diagnosed, then decide what to do, as surgery may be too costly to make any sense.
A valve repair, and a head R&R and resurface, check for cracks, and put back on just MIGHT make sense to spend the $$ .
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Is the smoke white, or blue-ish? Worn piston rings will not make any noise. They will make blue-ish smoke, and you will be consuming oil (more than one quart per 1000 miles).
Are you losing coolant (water) from the radiator? A bad head gasket can allow water into the pistons and cause white smoke (steam, actually) to come out the exhaust. This white smoke will disappear quickly (like normal car exhaust on a really cold morning), whereas the blue-ish smoke from burning oil will linger in the air much longer.
The tapping noise could be valve lifters which need adjustment (low cost), or it could be crankshaft bearing knock (high cost).
I'd get a second opinion, from what you are saying, I don't trust the first mechanic.
You also need to get an estimate of the value of the vehicle, because major engine work might cost more than a 13-year-old Neon is worth.
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