Question : Thoughts on buying a car or repairing current?
We have a Dodge Stratus 2002. It needs a transmission rebuild. The rest of the car is in good shape (the mechanic said). The rebuild is going to cost 2600 and we need new tires which are an additional 200. Options: Repair this car that’s worth 3000 Blue Book or Buy another vehicle. I’ve always read if repairs cost more than half the value then buy another car.

Other factors influencing decision that are important to take into account financially. Currently we don’t have a car loan (thank goodness). We would have to get a car loan for another car. We would like to buy a house in the next 2 years and need to save up for a down payment (at least 20%). The mechanic said the transmission comes with a 2 year warranty and hopefully the car would last 4-5 years total. We want to provide the best opportunity to save for a home and then our next savings plan is to save 10K to 20K for a vehicle so we can buy it up front with no financing (opposite of what we’d have to do now).

What’s your advice? Let me know if you need any other specifics.
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Best answer:

Answer by Villager
If the rest of the car is in good shape and the transmission will be under warranty, I’d say repair the Stratus. You could buy a new car, but something could easily go wrong with the new car, and then your in the same place you are now, with less money. It also makes sense to keep the Stratus, and then buy a new car with no financing later on than buying one on finance now.