I'm seeking any thoughts or ideas on the best avenue for a vehicle repair situation I'm facing (and backed myself into).
I recently bought new tires for my 2015 Toyota Highlander. That local mechanic, who I trust, said I need a new front suspension due to wheel camber, shocks, and tie rod issues. They quoted me ~$3800 for parts and labor, and confirmed you can't really make piecemeal repairs.
I still owe ~$17k on the Highlander, paying $385/month. I've found its value is about $10k for a trade-in at a few places. It has 136k miles. Insurance is also high due to the type of vehicle and where I live.
General maintenance is also expensive. A tune-up at a shop is ~$600 because of where three of the plugs are configured. They're fairly impossible to access without completely raising the vehicle up. I do like the vehicle though.
My credit is poor as well, low 600 range regrettably.
What I'd love some insight on is:
- Should I eat the $4400 ($3800 repair, $600 tune-up)?
- I'd also have to finance this due to the immediate need for the repair. That would likely bring my total debt on the vehicle to ~$21,500.
- Instead, do I see what I might get for trade-in for a far lower cost vehicle, $4k to $8k range?
- I'm upside-down by ~$7k now. For a lower priced vehicle, rolling over the loan, the debt total would probably be more around $15k.
- I'd still be upside down, though possibly less so depending on the replacement vehicle.
- I'd have no guarantees the replacement car wouldn't have its own unforeseen or underlying issues post inspection.
- This is also a bit unethical due to the repairs my current vehicle needs.
- Any other ideas or options I'm overlooking?
- Unfortunately not having a vehicle isn't feasible.
I sincerely appreciate your feedback. Thank you.
Upside-down Loan: Repair Vehicle or Trade-In?
byu/JayChucksFrank inpersonalfinance
Posted by JayChucksFrank
8 Comments
How many miles on the car? You might not need all that at once.
Also there’s no such thing as a tune up for cars made in the past 30ish years. For your 2015 Highlander spark plugs only need to be replaced every 120k miles. If you use the proper plugs and the engine is running alright there’s no need to change them any sooner.
Some suspension stuff is easier to DIY than others. Tie rods can be ordered online. If all tie rods and sleeves are replaced, it’s easy. My main problem last time was the guys that did the alignment uptown apparently have done too many drugs. My alignment was terrible. Struts can be done at home. Some balls joints I’ve done required a lot of pounding with a 2 pound hammer. I routinely diy because a lot of times I’m “making” more than my hourly rate at work
Find another mechanic. Whenever one throws out a big number like $3800 to replace a bunch of stuff it’s always best practice to get a second opinion. Also, that sounds awfully expensive, but depending on what all is needed could be about right (definitely too expensive for just tie ends and new shocks). Also, you don’t necessarily *need* new shocks. Yea, the ride will be sucky with worn out shocks but it it’s not a necessary part for the function of the vehicle.
I can’t imagine what kind of vehicle you’ll find for $4k-8k. It’ll likely need more than $3800 in work to be reliable. Even then, there’s 0 chance a bank will allow you will $7k into a note with $7k collateral.
No lender is letting you roll $7k into a 4 to 8k vehicle. You are in personal loan territory
I’m in a similar situation with my 2016 jeep cherokee. My suspension is one pothole away from costing $4k in my 2016 jeep cherokee. Suspension repairs are actually a maintenance item. They wear out over time. I don’t see any way around it. Your best option is to put a little TLC into your toyota. Unlike my jeep, toyotas run forever. Get the tune up. Also change the coolant and transmission fluid (if a transmission expert agrees). Do oil changes every 5,000 miles. Oil is cheap, engines aren’t. Spending a lot on these maintenance type items will cost you less than a new vehicle. Another option is shopping around. You could call a few smaller mechanics and get quotes. As far as financing, personal loans are at high rates, and there’s not a lot of options out there right now. The worst option is putting it on a credit card and not paying it off and having it accrue interest—don’t do that. Just be happy you have a toyota and not something less reliable
Keep it and maintain, even if slowly. Sparkling change not critical unless you are having issues… don’t ignore it forever but it can be delayed, unlike oil or fluid changes
$17k on an 11 year old vehicle?
Neither.
If you’re at the point of needing a personal loan to keep up on the maintenance, this vehicle is simply way beyond your means.
My advice is to sell the vehicle to a private party as-is, and get yourself an older Japanese sedan like a Camry or Avalon. You can probably get enough for the truck to pay it off.