Car Dilemma-WWYD?

How much is the car worth if the repairs are made? If it is less than $13000 ($9,000 plus the $4000 you owe), I would not make the repairs.

It definitely sounds like it's not worth shelling out $9000. for repairs, that's outrageous. I would get a second opinion on that also. If it is too much to repair ( I would compare it with the kbb value), then maybe CarMax could do an upside loan. In which case they'd pay off what you owe and include it into a new loan. That really sucks. Good luck!

There is no way I would pay $9K for repairs when I could get a brand new car for 16 or 17K.

I don't know about CarMax so I have nothing else to offer. It seems to me that someone would owe me some money somewhere, if I'd been ripped off to the extent that you appear to have been. There would be some long conversations with CarMax and/or the warranty people.

The one time I had an extended warranty, the warranty also did not cover the one thing that became wrong with the car, so I'm not big on extended warranties. I buy new these days.

And I agree, it might be worth a second opinion.

Good luck.

There are a lot of details here that we are unaware of.... specifics of the warranty, insurance, etc.

I do think a second opinion from a reliable source would be worth it to figure out exactly what is wrong, and exactly why the warranty does not cover the issues.

That said, depending on the make/model of the car and current mileage, it is probably not worth putting $9000 into it at this point, unless it is a high end luxury car which is supposed to last forever.

I would be negotiating with CarMax to get me into a safer car and honoring the warranty. How long have you had the car? What caused the explosion? Look into going to the maker of the car to see if anything was recalled and if they can help you.

Good luck.

ETA: Per your SWH... I would let it go and find a way to get another car. I would not under any circumstances whatsoever stop paying and allow a repossession. If you do that, kiss your future credit goodbye....for YEARS.

So exactly what does the warranty cover? You say it is still under warranty, but then say that the warranty does not cover what is wrong with it.

I am assuming that this is an older car since you bought it at CarMax used and you still have 2 years left to pay. What is the car even worth? Go onto Kelly Blue Book and figure that out first. I am doubting that an older car is worth the 9K in repairs plus what you owe on it. What is the mileage on the car? If you have a lot of miles on it, you will likely have a lot of repairs coming even if you do fix the car.

Obviously you need a car and you have to make a decision soon. I would figure out the answers above and go from there. My inclination would be to not fix the car and get a different one. You might take a hit on the unpaid balance on the old car though. I would lean on CarMax though to make a better offer since you bought the old car from them and it was technically still under warranty.

I would look at what is left on the loan less junk value. If that is less than 9,000 I would junk it and buy a new car. If it is more than 9,000 I would fix the car.

So say the loan is 4,000 and junk value is 2,000 that means 2,000 pays off the loan and sets you free to buy a new car. So if you could scrape up the 9,000 that gives you 7,000 to put down on a new car.

Make sense?

Oh yeah, the only way the repair would be worth it is if after repairs the car is worth more than the repair cost plus junk value. So with my made up junk value the blue book would have to be more than 11,000.

By the way, I am an accountant, this is how I would make a cost decision for an employer, didn't want you to think I pulled this out of my....

Oh and please ignore Gamma's advice, well unless you have no regard for your credit score.

well, there aren't many used cars worth 9K. it sucks that the warranty doesn't cover the damage. you're in a pickle. i'm so sorry.
we've used carmax for the last 3 car purchases in our family and been very satisfied each time. i'd take your car back to them and trade it in, and lean on 'em to give you a really good trade-in even though it's exploded. since you bought it from them, they should do that much for you at least and they probably will. you're not going to come out ahead. but i think that's the best way to minimalize your losses.
khairete
S.

Why did it explode? How long have you owned the car? Those are important questions to me. Is it something that CarMax missed in their evaluation of the car? If so, they would have liability. Also, what does the warranty cover? And what about insurance?

I would also get another estimate. Actually, I would get a total of three. I honestly need a little more information.

Like Suz said, I'd see what Carmax would give me for a trade and since I had some "resources," I'd try to get the best deal possible on a different car--O. for which I could pay cash and still allow me to pay off the old loan as well.

Car insurance does not cover things like this unless you are specifically paying for extra mechanical coverage, which is unusual.

Sorry about your car. 😕

Ouch.
I just had a transmission problem with my car (purchased 3 yrs ago from Carmax) and the warranty covered it.
It was some component which tells the car what gear it's in and the car won't start if it doesn't know.
With the deductible and what was covered for the rental car the whole thing cost me a total of $311.00 out of pocket.
So it totally worked out well for me.

Since your warranty doesn't cover what went wrong it's not going to do you any good in this matter.
You're still paying on it and it's basically an over sized brick sitting in the shop somewhere.
You need another car.
Get the cheapest used car that will meet your needs (you can probably find some older models for less than the repairs would cost to fix your current car) and then cut your losses with your current car by selling it for junk.
There are various buy-your-junk-car places.
You might have 2 car payments for awhile.

I use to work with someone who's husband (before they were married) use to handle cars like this.
Every year or so he'd buy the cheapest junker car he could find (that still ran) and then did nothing for it, no fluids, no oil, no nothing except gas and then drive it till it died.
Then sell it for scrap and buy another junker car that worked.
Insurance on it was incredibly low, who cares if anyone scratches it and his costs were very low.
Not sure something like that would work for you but it's something to think about.

Who actually inspected it?

Depending on who did it, I might request a second opinion.

Do you know or does anyone you know know a mechanic? I would ask their opinion.

Depending on the damage, that car is worth money. My friends engine went, body was in good condition. Mechanic bought it from them for about $5,000 for parts. He could've also made the repairs on hos own time and then resold for a profit.

If anything I would be leaning on carmax to work with you and give you a deal, but I would bring my own mechanic before purchase.

Did the warranty cover anything? How about insurance. Since you are still paying for the car you should have comprehensive coverage. Is the car worth as much as you still owe? If you fix the car would you be able to sell it for what you owe + the $9000?

unless you can sell it and recoup the money I would keep the car. Another way to look at it is to not fix the car and buy another car. If you fix it you're out $9000. If you don't fix it you're only out what you have left to pay $2-3000 but you'll have 2 car payments for awhile. So you would have to consider the payments on the scond car as a loss too.

here's how to figure it out I think. You have to add up the cost of the new car for the length of time the old car would've been driven by you + what you still owe minus the $9000. A factor in the decision would be if the new car holds it's value for longer than the old car would if fixed. If so, then subtract the payments, if you'd still be making them from the total.

I know this is hard to follow. I couldn't understand this until I started writing. Also, you'll have to estimate some of the values. Your insurance agent may be able to help you with the numbers.

added: how much will your auto insurance pay if they list it as totaled? As a high mileage 10 yo car it probably isn't worth much. My insurance company listed my car as totaled and would give me $2000. It was a 10 year old
Nissan Altima. The make and model of your car is important. They are not all equal in resale value.

when I buy a car higher resale value is one one thing i consider even tho I don't plan to sell it in the future. This paid off with my Nissan.

Me, personally, if it were me?
There is NO way I would dump $9,000 into a repair on a car 10 years old. None. Wouldn't happen. Period.

You can buy a brand new car (right off the lot, with full warranty) for not very much more than that. It might not be a nice car, and it might not be a long term reliable vehicle, but most standard warranties are 3 years/60,000 miles, right? I can guarantee you that even if you paid the $9000 to repair the car, you'd be shelling out for other substantial repair costs before 3 more years is up. And by then (3 years down the road) the value of that 13 year old Chrysler is going to be negligible.

That same $9,000 you are considering spending to make repairs would be spent a lot more wisely by putting it into a different car.

Now, how you dispose of the useless thing you still have, might be another matter. Since you don't own it outright. I honestly would have to research that and see what your options are to dispose of it. I don't know if you could actually trade it in to a dealer on a new purchase (most require you to at least be able to drive the vehicle onto the lot, right?).

S.,

Read your policy. Find out WHY it's not being covered. If it sounds hinky - talk to a lawyer. What WILL the warranty cover?

Does your insurance know what happened? Since you are making payments - I will assume you have full coverage insurance. And if it exploded, I'm sure they would want to know that.

What would I do? If repairs are more than the car is worth, I would hope that insurance would consider it a loss and pay it off. And I would buy another car.

What other resources do you have? If you can afford to purchase another car, do so. Talk with the insurance company and also talk with a lawyer to find out if this is just another way for the "extended warranty" company NOT to pay out...it would be worth the $400 for the sit down with a lawyer....

You dont explain what the warranty does cover - if anything or clarify what exploded means. Was there some sort of defect? Was the defect something that could have been foreseen by the manufacturer or was some one else's responsibility in a reasonable duty of care sort of way? Odds are really good the car is not worth $13,000 - the cost of repairs plus what you owe.

For right now, go purchase a new car, then determine what your options are for trade in as is or if you can get out of paying off the remainder based on the "exploded" issue.

What's the year, make and model? It would help to know that. This just happened to us. My minivan needed a new engine to the tune of over 3k. It wasn't worth paying that since it was older and had a ton of miles on it and we paid less than that for it to begin with. We sold it to the mechanic for $400 just to get rid of it.

If the warranty is paying the 9k to fix it, then I would do it ONLY if it's worth MORE than the 3-4k you still owe on it.

Insurance info has nothing to do with this since insurance doesn't cover it unless it's been in an accident. Good luck.

Talk to your insurance agent. Your insurance should cover this.

Have you had another mechanic (that you trust) look it over? Even with a brand-new engine, I can't imagine how in the world you could spend $9,000 repairing an engine?! We replaced one of the engines in one of our work trucks (a Ford F-150) not long ago, and it was under $5K. For a Chrysler Pacifica, that only has a 4-cylinder engine, it should be less. I'm suspicious of the amount you were quoted, and wonder why it is so high. Before jumping into a new car, I'd at least get a second opinion.

What are your options?

How much will the damage cost you after the warranty?

Does insurance cover any of the damage?

Assuming that the car somehow gets repaired, what will it's worth be?

Sharon E. has a good point - if what caused the "explosion" was a defect, you may be able to take it to a Chrysler dealer for more options.

If CarMax didn't check for recalls and have that repair done before selling the car to you, you may be able to use that as leverage.

If not, it sounds as though you'll need to scrap this one and go car shopping. At 10 years old and with 125k miles, it doesn't sound as though the Kelley Blue Book value would justify the repair.

Get a different vehicle. I'd be upset about the car blowing up for sure and I'd find out if there was any way to make them pay it off. If not...well, let them repossess it.

They can sue you down the road for the remainder of the balance but good grief. You have to have transportation now.

Not sure what exploded means - but did you look up any safety recalls on it?

Here's a couple links that came up on a quick search...

https://www.youtube.com/watch?v=qIoWnCsWIXM

http://www.thetruthaboutcars.com/2009/06/the-parting-shot...

http://car-and-safety.com/chrysler-pacifica-safety/chrysl...

bet the rent that CarMax knows how to get it's money is the only reason they are willing to work with you on this -- or they know they sold a vehicle w/issues and are trying to not get sued

What year is the car?

I agree with J C, but get a second opinion on cost of repair too!