Advice on a mess and hard decisions....

[reereetx]

I currently have a 2007 Dodge Durango (137k miles).  The engine appears to be locked.  We don't know what all is actually wrong or has caused it but it's not going to be cheap to attempt to fix and not even sure if it will need a new engine.  Unfortunately I have learned that Durango's don't have good resale value (hence why I didn't trade it in a couple of years ago).  My plan was just to finish paying off the note I have on it (About $9K yet!).  I have about a year to go (bought it used).  I had just planned to pay it off and keep it.  It's been a good vehicle with no issues until this crap happened.  My credit is not the greatest.  Had a family member loss 3 years ago that put me in bad depression and I fell behind on credit cards and student loan.  Slowly been getting better.  I don't know what my Auto score yet is though.  Anyways....I'm at a hard spot in trying to decide if I should attempt to "fix" the Durango and spend way more than what's it's worth...or just try to get something different.  If the current loan was paid for it'd be a much easier decision but I don't know how to figure out what to do with the loan.  I know I'm responsible for it and have every intention of paying that off somehow.  I'm not looking to get any expensive vehicle.  I've found some decent used vehicles for under $15,000 without just a ton of miles.  The questions I'm asking myself are: do I just want to buy something "cheap" that I can make small payments on and just keep making my regular Durango payment until it's paid for?  Do I try to get a decent used vehicle for $10k-$15k and see if they can roll old loan into it?  I do not have a savings full of cash currently.  Been trying to get there and that's why I was hoping to just get the Durango paid for and start paying off old debts and saving.  So I don't have $2k or more to spend on trying to fix it.  I've been told I could try to see what my finance company would be willing to work with/settle on or even check to see if I could somehow file a total loss claim with my insurance company.  Just any well rounded (non judgemental) advice would be appreciated.  I really just want to do the "smart" thing.

[Kree]

Clarify this for me. You say you still owe 1 years worth of payments, which amounts to 9,000 dollars.   So you've been paying around 800 a month for a 10 year old durango? 

If you are looking for "cheap"  don't look in the 10-15k range. You can get a brand new 2017 Nissan Versa for under 10k.  You can get a good used vehicle for under 5k.  You can get a 'cheap' used vehicle for 1500.

[Anonymous]

---

@reereetx wrote:

I currently have a 2007 Dodge Durango (137k miles).  The engine appears to be locked.  We don't know what all is actually wrong or has caused it but it's not going to be cheap to attempt to fix and not even sure if it will need a new engine.  Unfortunately I have learned that Durango's don't have good resale value (hence why I didn't trade it in a couple of years ago).  My plan was just to finish paying off the note I have on it (About $9K yet!).  I have about a year to go (bought it used).  I had just planned to pay it off and keep it.  It's been a good vehicle with no issues until this crap happened.  My credit is not the greatest.  Had a family member loss 3 years ago that put me in bad depression and I fell behind on credit cards and student loan.  Slowly been getting better.  I don't know what my Auto score yet is though.  Anyways....I'm at a hard spot in trying to decide if I should attempt to "fix" the Durango and spend way more than what's it's worth...or just try to get something different.  If the current loan was paid for it'd be a much easier decision but I don't know how to figure out what to do with the loan.  I know I'm responsible for it and have every intention of paying that off somehow.  I'm not looking to get any expensive vehicle.  I've found some decent used vehicles for under $15,000 without just a ton of miles.  The questions I'm asking myself are: do I just want to buy something "cheap" that I can make small payments on and just keep making my regular Durango payment until it's paid for?  Do I try to get a decent used vehicle for $10k-$15k and see if they can roll old loan into it?  I do not have a savings full of cash currently.  Been trying to get there and that's why I was hoping to just get the Durango paid for and start paying off old debts and saving.  So I don't have $2k or more to spend on trying to fix it.  I've been told I could try to see what my finance company would be willing to work with/settle on or even check to see if I could somehow file a total loss claim with my insurance company.  Just any well rounded (non judgemental) advice would be appreciated.  I really just want to do the "smart" thing.

---

You first need to find out what is wrong with it and how much it will cost to fix it. If the motor is shot, consider buying a used one and paying someone to put it in vs. paying to have yours rebuilt. (should be way way cheaper.)

You should finish the payments on the Durango. I see the choice being whether you fix it or buy a $1500 car to drive while the Durango sits and you pay it off.

Time for a budget. Time for a second job. Time for moving somewhere cheaper. Time for selling things.

I would absolutely not roll over thousands of negative equity into another car loan. I think it's pretty rare that somebody does this once and gets out. Rather it's a vicious cycle that keeps on through your next however many vehicles.

[reereetx]

My payment is right at $500/mo.  Just refigured and I have about 18 more months.  I think I was thinking 1 year because I was "hoping" to pay more per month to have it paid off by December 2018.

[jlitnns]

---

@Kree wrote:

Clarify this for me. You say you still owe 1 years worth of payments, which amounts to 9,000 dollars.   So you've been paying around 800 a month for a 10 year old durango? 

If you are looking for "cheap"  don't look in the 10-15k range. You can get a brand new 2017 Nissan Versa for under 10k.  You can get a good used vehicle for under 5k.  You can get a 'cheap' used vehicle for 1500.

---

What both Steeler and Kree wrote...if you decide to look for another vehicle, $10-15k is out of your price range plenty of good vehicles on the market for cheap. I just sold a car I had for 10 years for $1800 and it has lots of life left.

And you need to budget and make a plan to get out from under that $9k. Looking for more debt is NOT the answer. Keep your head up and you got this

[reereetx]

Just following up.  So...either way I'm going to have to "borrow" money.  Car dealership where Durango is at is telling me it's good chance going to cost a couple grand just to look into it.  Won't even cover cost of repairs.  If I decide to fix it, probably going to cost $4-5 thousand which I will have to borrow. Sorry....just no way around that.  If I borrow money for a used vehicle in that range (or less)....I can just work towards paying off the Durango note and just (for grins) see if they'll work with me in any way shape or form.  In the mean time I can try to scrap my vehicle what I can (transmission, tires, rims,).  Whatever I can to get something over nothing.  I've heard some dealerships will accept non-running vehicles as a trade.  Granted you don't get much so I'd rather just try to scrap it myself.  I know it won't be an overnight thing.  I just think either way I'm looking at borrowing $4-5 grand on top of paying another year and a half on a car note.  I think I'd rather have an "asset" to be paying off rather than that much in repairs. 

[Anonymous]

---

@reereetx wrote:

Just following up.  So...either way I'm going to have to "borrow" money.  Car dealership where Durango is at is telling me it's good chance going to cost a couple grand just to look into it.  Won't even cover cost of repairs.  If I decide to fix it, probably going to cost $4-5 thousand which I will have to borrow. Sorry....just no way around that.  If I borrow money for a used vehicle in that range (or less)....I can just work towards paying off the Durango note and just (for grins) see if they'll work with me in any way shape or form.  In the mean time I can try to scrap my vehicle what I can (transmission, tires, rims,).  Whatever I can to get something over nothing.  I've heard some dealerships will accept non-running vehicles as a trade.  Granted you don't get much so I'd rather just try to scrap it myself.  I know it won't be an overnight thing.  I just think either way I'm looking at borrowing $4-5 grand on top of paying another year and a half on a car note.  I think I'd rather have an "asset" to be paying off rather than that much in repairs. 

---

Having the dealer look at it is a mistake. You take cars that are under warranty to the dealer. You need an independent mechanic. Find a good one (ask friends, family, look at yelp reviews) and get it towed from the dealership. The dealer of course is going to paint you the worst picture possible . . they want you to buy a new car.

If it truly needs another engine you can get someone to put a used one in for way less than $4-$5k. 

This will take some patience and resourcefulness but thousands of dollars are on the line here. 

[Anonymous]

A recycled motor with a decent warranty can be had for a durango for around 1.2 to 2k. Average labor for a straight swap is about 6 to 7 hours. Most small shops offer mechanical labor rates at around 85 an hour. So thats worst case around 3k. In the end you have a motor with a warranty to drive until you can get out this loan. Agree that buying another car is short term fix that will create greater long term problems.

[Anonymous]

I don't think scraping/parting out a vehicle that you currently have a loan on is a good idea. You wouldn't be able to scrap it anyways as you need a title to take it to the scrap yard and even if you posess the title, without a lien release the title is no good to a scrap yard.

Buying another vehicle and financing it will only get you further in the hole, a vehicle is not an asset whatsoever, vehicles depreciate they don't appreciate (with some exceptions). I doubt the lender will be willing to work with you, unfortunately that is not their responsibility to help you out in these situation's in regard's to unexpected repairs.

My three recomendations for the situation would be to find a good reliable mechanic as mentioned above, rather than a dealer who charges 100-120/hr for labor, and get a real estimate on reparing the vehicle that hopefully you can afford.

Or, I would find a friend willing and able to help you out, to install a motor in the vehicle, and then source a cheap used motor for the vehicle from websites like carparts.

The last option would be to simply purchase a 1-2k used car that has a few year's worth of life left, and drive that while finishing the loan on the durango.

No offense, but furthering yourself in debt and taking on an additional payment for another financed vehicle, as well as added insurance cost's on the new vehicle (keeping in mind that you have to maintain full coverage on the durango as well since it is still financed even though it isn't driveable) just doesn't make sense.

500/mo for durango

+ let's just say 125/mo for full coverage

+ 250-300/mo for new car

+125/mo full coverage

that's 300-400 if not even more a month in expenses to take on another vehicle loan in addition to the one you already have. By not doing this, within a few month's you could pay cash to replace the engine with a used one with the help of a friend and within a year or two's time you will have a paid off vehicle.

[Miner]

About 3 years ago, I paid for a rebuild of my brother's '97 Explorer engine for ~$2800k when he was out of work and I live in a high cost state (CA).    That place did offer fiancing on repairs, but as my brother didn't have a job he couldn't get qualified.  Don't pay for a dealer to practice diagnostics on the vehicle.  If they can't immediately determine what the issue is then it likely isn't the computer system and is something mechanical.  For what they want to charge you to figure it out, you could just blindly replace the engine (either a lightly used one, a crate rebuilt one, or have them rebuild it) for less at a cheaper shop.  Though I would let the shop look at it first.  I'm assuming you tried the online forums that specialize in older Durango as I've found others usually have encountered most of the same issues that I've ever seen. 

Back to my brother, his new wife of 2 years is mad at him as he just bought my 2005 Chevy Trailblazer with 140k miles (which has never had any problems other than the usual things like replacing the altenator once or the battery and tires) off me for $1200 even though the Explorer still runs really well after the work put into it.  Dealer only wanted to give me $700 on a trade in.  I likely could have sold it for $1800-2000, but it might have taken weeks.  So you can get cheap reliable cars.  If you end up trying to get one, make sure to have a mechanic look at it to determine if the one you are looking at is actually one of them.  Some vehicle models tend to have better reputation for reliability at higher mileage than others, so do some research first.