Does it make any sense to have a $1500 repair done on a car that's book value

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nydreamer123

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is only $2500? My options are limited because I still owe the bank $4000 on car loan. I cannot afford this repair at all either. Should I trade in for new car and add on remaining balance to new loan (doesn't sound good), or should I have this expensive repair done on my old piece of junk? Help!
It needs an intake manifold gasket plus some other things. The car is a Chevy Malibu with 100,000 miles on it. I am "upside down" on the loan because I wasn't able to put a down payment when I bought the car AND took a 72 month loan to have lower payments. There are other issues with the car as well that need to be fixed and I would love to have a new reliable car....hmmm...maybe a Honda this time?
 
Dont worry about the cars value, that comes into play only when you go to sell the car. Today your worry is about being able to drive. Is there a reasonable expectation that the $1500 will fix whatever is wrong and make the car drivable for some time? if so go for the repair.
 
If it is a runner and you can trade it in, trade it in.

The odd question is why do you owe $4000 on a car worth $2500? Thats called "upside down" on the loan, and that is a different sort of problem, but often people in that situation just stop making the payment and let the repo man have the $2500 car instead of the $4000 owed, but it is also bad for your credit rating.

But anyway, I have on several occasions paid as much as a car was worth to have it repaired, usually because I am attached to the car and it makes me feel good to have my old champ properly maintained and restored.

If it is some kind of potentially classic car like Corvette or Mustang maybe it is worthy of extreme maintenance efforts, while if it is some kinda average junk then well its really about what is satisfying to you. Do you WANT a different car? If you already have this desire, perhaps this situation gives you the excuse, the motive to go through with it. But if you LIKE your existing car then work on it and keep it.
 
Depends on what needs done and what shape the car is in...how many miles, well maintained, etc. What's wrong with it?
 
You have to decide that for yourself. I'd have the shop give the entire vehicle a good check over to see what else you may need in the near future. If the rest of the vehicle is solid, then I would get repairs done. Four grand is alot of money to just flip over to your new car loan.
 
if you trade it in you,ll start out upside down on a new loan,it might be better to try and repair this one and drive it some more if possible, its up to you ,but its almost a loosing situation either way you look at it,i think if it were me though if is not a big repair i would fix it and drive it some more,good luck.
 
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