Car repair-Amount owed versus cost of repair-Is it worth fixing?

Question

My fiance owes around $7,000 on a 2001 Subaru Forrester. The transmission has been acting up for a while and finally gave out yesterday. He brought the car to a mechanic, who estimated the damages at a minimum of $2600 and has said there is a possiblity when they open the system that more things may need to be replaced. With a few other problems (electrical, etc), total repair for the car could be around $4,000. We are trying to decide what the best option is. Some things we are considering-Buying a cheaper used car, saving for the repair and selling the Forrester after repaired (to recoup some cost) or selling it as is and taking a loss. Has anyone experienced a similiar problem when the cost of a repair borders the value of the car and a significant amount is owed? Any recommendations?

I should add the car is high mileage (around 120,000) because he drives for work. It had also been in an accident about 2 years ago, but was repaired completely. The current problems are not related to that, but I know this will have an effect on the value of the car and whether or not it may be worth fixing.

Answer 1

Do the Push,Pull or Drag it in, get a new car and get almost top dollar for a wreck that is going to eventually drain your patience as well as your savings.
Or buy a certified rebuilt transmission and install it in a now 8.5 year old car. I did the math right, a 2001 was sold in 2000, and a 2008 will be sold this year, so a 2001 model is 8.5 years old.
Sell it 'as-is' or trade it in, KBB has the Forester at $7,887 in fair condition, thats running. The cost of that transmission would almost buy a working 2001 Subaru Forester. eBay has one for Buy it now! $5,499.
After you figure the interest on the repair bills, you can buy that same car for the cost that you were quoted to repair.
Look at it this way, either way you choose, you are going to pay, get something that you will enjoy, together.

Answer 2

Since you still owe money, it may be better to fix the vehicle. That way, since you are still making payments on it, at least you can use it. And you will get a new transmission out of it. Also check out the Blue Book Value. If the car isn't worth as much as you still owe and you try to sell as is, you won't get the blue book value because it is broken down. It is a 2001 so it isn't too awfully old. If you buy a cheaper used car, who is to say that you won't end up in the same predicament in a month or two. If you choose to sell the vehicle and don't get the $7000 you still owe, you will be in the hole on that vehicle and be paying on another that may give you the same if not more problems since it is used and cheaper.

My advice would be keep with the same vehicle, fix it and get a new transmission out of it. And after you finish paying the $7000 off, you can choose to sell it and even list it as having a new transmission which could bring in some extra cash for it. I would also take your vehicle to a few other places to get a second opinion and make sure the first garage wasn't trying to get some money from you. Good luck and I hope this helps in making your decision.

Answer 3

Which is exactly the reason that taking out a mechanical breakdown policy on any used car is a good investment. Your fiance's car could have been repaired for the one hundred dollar deductaible.
In this case you could potentially have 11,000 dollars invested in an old car.
Your decision has to be based on some basic facts.
Is the Subaru high mileage? If it is the likelyhood of it needing further repairs is high. If your credit is good enough, the solution is to buy another car using this hulk as a trade. you would basicilly be upside down, but if they gave you two grand then you would have to tack five onto your new purchase and pay it off over time.
If you have the cash to fix the Subaru, you could use this cash to pay off the difference between the trade in value and the cost of another car. Next time buy the extended warranty....

Answer 4

Been there done that. Paid about $1200 for transmission job after owning a 2nd hand car for 33 days. Not good!! Anyway, after 3 years of driving the clunk of crap I finally bought another 2nd hand and more expensive car. Now, I am paying for newer car (which has had it's share of problems) and still paying for old car at the same time.

So, basically this is what I'm trying to tell you.................1) spend the money on fixing this one up Correctly and 2) if you do happen to buy a car, make sure it's brand new, and never been driven or you'll just end up with a new set of headaches and more bills than you have got right now.

Answer 5

Sure. But $1000 is a ton of money; I assume your car has the 4 cylinder engine. Book time is just over 6 hours, a water pump is around $60...a thousand bucks? That's about $150 an hour. Wow, I'd like to charge that much. Maybe another $40 in antifreeze, whatever. Look around some more. But still, it's worth fixing they are nice cars.

Answer 6

for $2600 you should be able to install a used tranny. can you live with the other problems or fix them on the cheap? this is always a tough call but you have to fix it since its not worth much otherwise. i would call around to get prices from other shops. hint- avoid the dealers if you can, their prices are almost higher that private shops.
i know of a case where a acura dealer wanted almost 3 grand to repair a leaking fuel line. final cost at a private shop was $125.

Answer 7

since there is no guarantee that the repairs will be the LAST TIME the vehicle needs repairing, I would recommend spending the money on a down payment for a newer vehicle and selling the old one under an "As Is" condition.

Good Luck!

Answer 8

first ....get some other technical opinion over the tranny conditions.(at least two)
second try to bring to this site, the codes the car has(OBDll codes)
$4,000.00 US Dollars is two hi.
buy the tranny in decent junk yard. $150.00 dollars.(may be two hundred)
put Your fiance to do the job on a weekend, meanwhile you in the internet asking question ,(just in case)
put the music ,bring the sodas,etc.
if one of you have a friend with mechanic inclination call him.
if you have a friend mechanically challenge tell him You will be out town the whole weekend.

Answer 9

if your any where near No Central Ma, my mechanic will fix it for under a grand and that includes a new clutch if its a manual. He only works on Subaru. He could do it in his sleep probably. I have 2 Subaru.