I've been considering retiring in a year or so. My net worth is ~750k. I own a 1996 Honda Civic DX that has about 130k miles on it. The car's engine light went on two months ago; my mechanic tells me I need a new distributor (would cost ~$500). I've tried a number of other things to fix it with other mechanics, and so far nothing's worked: new sparkplugs, new distributor wires.
My car also has other issues. It burns oil, about a quart per month, sometimes more. For some reason, the clear paint coating on the back trunk hood has entirely peeled off, revealing the matte coat of paint. And recently, the speedometer works only intermittently (could this be related to the check engine light?). The car also needs new hubcaps and sun visors.
Given all it needs, would it make financial sense for me to replace it with a newer (used) Honda before things get any worse with the oil burning, engine light, etc? I took a look on Craigslist, and there are 2001 Civics available with the same mileage for around $2700, and 2003 Civics with 81k miles around $6200 (which I think is high). Should I assume things are going to get worse? Or is it worth it to make the repairs and keep my car, which runs well in spite of these issues?