I am in a bit of confusion on what I should do. If this is not the right place for such a question, I apologize and I will gladly kick myself out - just let me know.
I have a Honda Accord EX 2000 for about three years with 181K miles on it. I was planning on selling the car - the Kelly Blue Book price was around $3500 but due to the body damage it has, it is about $2500 but I'm thinking I'll get maybe $1500 after all the bargaining process. Today, I went to a mechanic who evaluated the condition of the car and said that it would take roughly $650 to get the car into a very stable state where I can use it for another two years. The main problems found were:
- Replace rear brake pads
- Replace right upper control arm
- Replace valve cover gaskets
- Replace power steering pump
- Replace left side axle seal
- Wheel alignment
Along a parallel line, I was looking to buy a new Honda Accord 2013 model. I have been sanctioned a loan of either $15K @2.79% APR for five years or $25K @3.75% APR for six years. The monthly payment would come to around $350-$450 with either financing.
The catch is this: I have a long road-trip coming in a month where I will have to drive roughly 8000 miles in three months (cross-country trip). Therefore, if I have to go on this trip, I should either get the car repaired @ $650 or sell this car at about $1500 and buy a new car. I am a bit hesitant in putting 8000 miles on a new car in 1-3 months but other than that, I don't really have a problem.
What do you recommend? Should I just go with a new car or should I invest $650, extend my current car's life by 1-2 years and then sell it off? Any advice would be highly appreciated.