🛠️ Should you repair your broken car or trade it in?

Your car's engine just died, the warranty claim was denied, and you still owe a chunk of change. You have two main paths: fix the car (either yourself or at a shop) or trade it in as-is and roll the negative equity into a new loan. This calculator compares the total debt and out-of-pocket cost of getting back on the road.

Fixing the car means paying for a new or salvaged engine. A dealer replacement is expensive but hands-off. A DIY swap saves thousands but costs you serious time and requires tools like an engine hoist. If you finance the repair, those interest costs add up.

Trading it in lets you walk away from the broken car, but you lock in the negative equity. You'll start a brand new loan for the next vehicle, adding the shortfall from your current loan to the new car's price.

This model compares the total debt you take on to get a working vehicle. It doesn't account for the fact that a new car and your repaired current car will have different resale values down the road. We focus strictly on the immediate cash and debt impact.

This view was inspired by:

• new-vs-used-car

For further related reading, check out:

• Reddit