Subaru Repair: 1993 Impreza with expensive repairs, Fix or sell my Subaru

Question
Hello,
 I have a 1993 Impreza, which I know is old, but it only has about 155k miles on it. It recently got a new clutch and then I drove it across country. When I got to my destination it was knocking so I took it in and was informed I need a new timing belt and a new clutch. I can get some money back on the clutch under warranty, but ultimately it looks like it will be about 1800 dollars for the repair. Do you think that if I go ahead and do this I will be able to nurse the car another 3 years and about 25 thousand miles? That's when I will will be able to afford a new car. Or should I cut and run now? What other problems might I expect if I do try to save this car? And at what point is a repair not worth it? This repair is already twice the worth of the car in a private sale.

Answer
Johanna,

I sound like a broken record here but you just can't look at the cost to repair versus the value of the car it will never pan out.

You must look instead at the TOTAL VALUE of repairing versus money spent on another car, the interest paid on a car loan, or the interest lost on money spent on another car versus staying in the bank or any other investment.

We have been "programmed" by society to buy new rather than keep what you have.

If you Want a new car go buy one, I am sure you deserve it.

But keep in mind the spot you are in now will be the same with whatever you buy a few years down the Road.

Cars are not an investment and go down in value every day regardless of age, loosing 10 to 20% every year.

I don't know about you but I would rather loose 10% of $2000.00 than 10% of $20,000   

There is no guarantee your Subaru will need anything else or it won't.


http://allwheeldriveauto.com/