Car Trouble: The Verdict

Well, after over two weeks with the car in the shop we now know more about what is wrong and how much it will cost to fix. Initially, they suspected the timing belt(s) snapped and the question of engine damage arose. The fix was to repair the timing belt(s) and then do a test on the engine to see if there was any damage. Today James talked to them again and there is indeed engine damage. The only fix is an entirely new engine, possibly the worst outcome in terms of cost. We are now faced with three possible options, none of which are financially positive for us.

Option #1: Fix the engine, at a minimum cost of $7k. The upside to this option is that the new engine will be warrantied for 36000 miles. The bad side is the risk we take that something else will go wrong with the car once we've replaced the engine. The other downside to this is that engines for Land Rovers take an average of 2-3 months to come in, leaving us without a second car until almost the end of this year!

Option #2: Contact junkyards to see how much they would pay us for the car as-is. If we could make a few thousand dollars on the car, we could pay off the existing loan and at least start from scratch with a new second car or even just go back to one car again for the time being. However, the down side to this is that we will have spent a large chunk of money with nothing to show for it. The upside is no headache or worry about what will happen to this car next.

Option #3: Probably the least enticing and most bold option. We could fix the Land Rover and sell the Envoy. We are not upside down on that loan, having owned it for 3 years and we could actually make some money on it and then save that monthly payment. The downside to this is we lose the family car (more room for guests, car trips, etc.) and that we now depend on a car that I am not totally comfortable with for the long term.

I am not excited by any of these options. We're thinking this over and the shop is holding off until we call back. I'll probably start researching junkyards over the next couple of days just to check. Comments or advice welcome. We've never been in a situation like this before. Makes me think we should have just stayed a one car household!