So here is the situation..
My 2008 Subaru Impreza 2.5i (4 cylinder engine standard transmission with 96,000 miles) has had a problem over the past 6 months it is burning oil we replaced a seal because it started leaking terribly on the highway and that apparently only temporarily fixed the issue. I have had it since 2011, and this is the first major issue I have had. I checked the recalls, and there are none for this issue.
My wife was driving this week on the highway and the car completely lost power, and idled hard making a terrible noise. The mechanic thinks the engine is shot, and will need to be replaced. We are getting a second opinion, but I tend to agree with his diagnosis. Due to the fact he was surprised it ran after it ran out of oil the first time.
The salvage value is $300 as is.
We had it towed for $120 so that is already a sunk cost.
A new used engine is $1000-$1500. There are only a few in the north east so it isn't the easiest part to get.
Labor probably 10-15 hours.
The mechanic give me a rough quote of $3,200 to fix including parts and labor.
The vehicle prior to this issue was worth $4000-$4500 according to KBB.
We are planning on selling it before this happened and getting a new car this year due to another baby coming along. My wife has issues physically and needs something a little easier to get the kids in and out of with their car seat. I am not in a rush to get things done since I plan on biking and still have one car as a family to get around. It just makes things difficult on the weekends because my wife works Friday-Sunday.
Here are the 3 options in my mind.. (please feel free to offer and ideas I have not thought of)
Option 1: Take the salve price of $300, save up cash and buy another car
Option 2: Repair the car, but do the labor my self with help from family
Option 3: Have the shop repair it, and then sell it.
Here are my concerns I don't love option 1 from the simple fact I could be giving up a few thousand if I repair and resell it my self. Option 2 would require me to commit a bunch of time to doing something I have no experience doing. I do like to learn new things, but I have a feeling it might be a little bigger project than I want to bite off right now even with the help of other people. Also, if we want to sell it anyways I have a feeling it will be difficult to re-sell a vehicle with a replaced motor unless I give it away at a lower than market price. I am pretty sure option 3 is off the table since the repair, and the lower re-sale price will not be worth it.
Thanks again for the help!