Thank you everyone for your feedback. To answer questions...
1. If the engine went kaput because of neglect, what else is on it's way out? How are the brakes, tires, and transmission? How about the heat & A/C?
Brakes and tires are new, catalytic converter has been replaced under warranty and some other misc. items in the last year. Interesting that you mention the A/C. About a week before the engine issue, we had an extremely loud sound coming out of the A/C unit which ended up self-correcting. We need to have them check that as well! He's also calling the dealer to get full records of what has been done. We've had it in the shop at least 3 times over the last year.
I'm not sure if it makes sense to replace the engine if the car has other issues...what does the mechanic think? And can you recoup some of the costs from the mechanic not replacing the cap after an oil change?
My husband isn't sure he even has the receipt. Problem is my husband's ignorance over the fact that the engine was likely already damaged by the time he discovered the cap was missing (maybe 3 months later when he was replacing wiper fluid). When he discovered it, he drove to AutoZone, had a guy help him check the oil level and bought a replacement cap. They added 4 quarts! Current mechanic says that was just a band-aid. I really don't know if we have any recourse as it would be hard to prove at this stage, I would think? Ugh. Dealer did say that the Cube's have been very reliable. Said he's only replaced one transmission for that year and this is the first engine.
I don't know where you are, so it may be a little more difficult than were I am due to availability and cost of living. I'd buy a used engine - even from ebay. To get an idea on prices look here:
We live in Pittsburgh so cost of living is not too high. Thank you for the suggestions. We're checking into all options!
2. The problem with getting a beater for a couple grand is that unless you know what to look for, you will be potentially just buying yourself another money pit.
Very good point.
First, are you sure the car is actually only worth $4-5.5K? I don't really care what Edmunds/KBB say it "should" be worth; what matters is what comparable cars are actually selling for in your area (which could be very different). This is especially true if your car has an unusual combination of options (e.g. a manual transmission) that make it scarce but more desirable for certain types of buyers.
Second, even if the dealer is great, having an independent mechanic do the engine swap is almost certainly going to be much cheaper.
Third, I'm not going to say much about how the missing oil cap led to a seized engine, because if you can't say anything nice then you shouldn't say anything at all. Just be aware that, had the failure occurred sooner after the oil change, the liability for the repair cost could have been on the mechanic who failed to replace the cap. But since you never checked it in a year(!), that's probably on you.
I used KBB (though I know they're usually high), Edmunds, Craigslist, AutoTrader (local) and other local listings to determine approximate value. They've stopped making them, so they may eventually be a "collectible." They're also very desirable for people with handicaps or other physical limitations as they are very accessible (that's why my husband bought it). That said, my husband parked it in the city for years and it's gotten pretty dinged up, so it's about average condition (I took that into account in my valuation). Found a local mint-looking Cube with 80k also at another dealer for $7900 and another 2010 for $6000 on Craigslist. There aren't too many, so it's a bit of a guess though.
This seems very low. What kind of salary do you have with a 75 mile commute... If it were me, I would sell it as is, and move close enough to my employer I could ride a bike or ebike until your savings is at a higher rate.
Yes, our savings is low. We're just starting out on our path to financial wellness, I have an ex who stopped paying child support a year and a half ago and my husband has significant medical expenses which require us to set aside several thousand a year at the outset for our high-deductible plan, so please don't judge. I can only start where we're at. I am also well aware that my husband's salary ($50k) does not justify the roughly 35 mile each way commute, but I work in the complete opposite direction (13 miles away) with $65k salary, so it doesn't make sense for us to move closer to his work, and he's actively working on trying to find a closer job. Not easy in this market for what he does (digital designer / art director) at his age (50). I am actively looking for work closer to home to improve our situation as well. Last year my husband was laid off at his previous job and this was the only thing that came through. Continued unemployment was not an option.
I do agree with your assessment, but for us it would have to be a longer term strategy given our situation.
In my opinion, what the car is "worth" with a working engine only matters if you're about to sell it. Since that wasn't on your list of options, your real comparison is:
1) How much will it cost me to repair this car and operate it over the next five years
2) How much will it cost me to sell this car, purchase another, and operate it over the next five years
All very good points to consider, thank you. You're right – if the car was still working, we would NOT be looking to sell. We had planned to keep it for the long haul (though with better maintenance from here on out!!).