I've just gotten some truly bummer news from my very honest mechanic that I will need to replace my transmission. (Check engine light when on, my OBD reader said: P0741 Torque Converter Clutch Circuit Performance or Stuck Off)
I'm pretty upset because my car is a 2004 Toyota Corolla with only 100k miles (I just passed 100k this month). Despite my low mileage, I estimate it's not worth more than 3k WITH a good transmission. It's been in a few accidents where I've had most of the rear and side panels/doors replaced so there are no major dents but there are a few deep visible scratches in several different places.
The quote for a new transmission was $2800, so given that is about the worth of the car, all the advice is to buy a new one. But I want to be Mustachian and if my torque converter hadn't broken, I'd have happily driven it for maybe 7 more years or so.
Mustachian angel on my shoulder in favor of fixing:
1) Low mileage, and it's otherwise a Corolla with a few years of tires and brakes left.
2) I've been the only owner, (my 22 year old self bought new before knowing better) I know all the maintenance and accidents, and I'm falling to the sunk cost fallacy of thinking of all the times I paid honestly a lot of money for body repair when the accident was my fault. I had a 1k insurance deductible and paid that on two separate occasions)
3) I really wanted this car to last me until the self driving car utopia is upon us and I never have to buy and maintain my own car again. I would have happily driven it another 7ish years if it takes that long for fully automated cars to be legal for a ordinary citizen to own.
4) My insurance and registration will be kept as low as possible with a car my age and value (no collision coverage)
Consumerist devil on my shoulder telling me to buy a new-to-me car (probably something like a 2012-2015 Prius):
1) This expensive repair will not add any value to car, repair is worth as much as the car is - put the money toward a new car.
2) I have the cash for a new used car, no loan needed.
3) if I get a Prius, I'm helping the environment and the savings on gas will go toward the increased insurance and registration. Although I only drive about 8/k per year, it's all extremely slow bumper to bumper city traffic so a hybrid is perfect for these conditions)
4) I will help future-proof myself against rising gas costs (at least a little)
5) I have had the same car for 13 years, which is in the modern world is still fairly commendable.
6) My employer will give me about $1,000 for the purchase of a hybrid (after taxes I guess it would be about $550-600). This deal actually might only be available for another year.
7) I sit in traffic a lot (2.5 hrs a day, no I cannot improve this, long story) and a more modern system that integrates with my phone would be kinda nice TBH
8) I haven't had to do replace any belts or parts in a few years, and my water pump is supposedly leaking a little, so I could be due for some other somewhat pricey maintenance soon that I don't know about yet.
I have a feeling you guys will tell me to fix but given all the info on my specific situation- what would you do?