My engine died on my 2001 Volvo S40 with 107k miles and the dealership said it needs a new engine. The cost for the engine and labor is 5k almost as much as I owe on it 8k. What should I do?

Answer 1

I would Google the make, model and year of your car...and see how much a replacement engine (new and used) would cost. Then I would ask the repair shop how much they charge to change out an engine. I would ask...if the 5k is an installed price for the engine..assuming it's the engine that needs repaired..you were very vague...the repair shop a breakdown on the engine price and the labor charge The other way to answer your question is financial. You have no influence over the $8000 owed on a loan so ignore that for now. Your decision rests with whether to sell or repair the car. What is the value of the dead car now and repaired? If the repair raises the value by $5000, then by all means have it fixed. You then have use of the car and can always sell and recoup your $5000. The $8000 comes into the picture if you don't have the cashflow to make the payments and make the repair - hopefully you have access to cash to keep your options open. Good luck!