1995 Dodge Intrepid 3.5 Lt

Hello all, Are there any dodge experts out there? Three days ago I bought a dodge intrepid from my father in law. Yesterday I was driving and I
started hearing a sound like something draging of the car. So I drove about a mile to the next exit of the interstate. Once I got off the interstate the dragging sound increased. About a have a mile from the nearest service station I notice the smell of antifreeze. Once I got to the service station and pop the hood there was antifreeze leaking from the rear of the engine. At that time I thought that one of the heat core belts had blown. After speaking the the gas station attendent about keeping it the over night, he told me to move it around to the back of the shop. When I hoped in it and started it there was a loud "bam,bam,bam,bam" coming from what sounded like the engine. So I shut it off and push it the rest of the way. After that I had it towed to a mechanic who told me the engine was junk. I took a while at the mechanics I check the oil and it was completely dry, After that I check the undercarrige for oil and found nothing suubstaintal. My question is could a car drive around town for a few day with out any oil or do you thing the mechanic is trying to screw me, or could it be the transmission?
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