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I bought a used Honda Accord in 2010 for $17k+ tax and fees. It has 59,102 miles and is paid off. Kelly Blue Book says that it's worth $6-7k. A new car such as a 2015 Accord will cost about $16k + fees @3.09% or about $17k. My credit is excellent and getting the lowest interest rate will be no problem.
My car started to burn oil in January. I had the oil changed and the oil light came on briefly for 10-15 seconds when going uphill and then went out. The dealer said I should bring it back at 1k, 2k, and 3k miles to review oil consumption. If I have to fix it, I will have to replace the piston rings and related parts/labor for $3,500. I could fix some optional cosmetic damage in the forms of scraps.
- At what point does it not make sense to fix it?
- At what dollar amount for a trade-in should I jump at?
- At what point should I just drive it into the ground?
The goal here is to spend the least amount of money all by having the best trade-in value.