Upside-down Loan: Repair Vehicle or Trade-In?
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.