Our 2007 Subaru Outback 2.5i with 150k miles needs its second head gasket repair. Three separate mechanics have examined it and quoted and estimated cost of $3200-3500.
The stats:
-We live in Seattle and neither of us drives to work.
-We drive it about 11,000 miles per year, mostly on trips out of town, loaded down with skis, bikes, camping gear, etc.
-For the past 5 years, car expenses have averaged ~$4600/ year for everything - gas, insurance, car tabs, tires, maintenance, repairs. Yes, cars are a major expense.
-Freeway mpg= 27-30. City mpg = 16-18. We try to minimize city driving, but still end up using it a few times a week.
-The head gaskets were re-done in 2011 at 85k miles, along with the 100k maintenance.
-Since then, we kept on top of all 30 and 60k routine maintenance appointments, tire rotations, etc.
-We recently got a new alternator and a repair to the catalytic converter.
-We had newish tires (20k miles) but one blew out badly on a recent trip and we had to spend $800 to get 4 brand-new tires.
-brand new battery
-brakes are OK, rear is at 40% and front is at 80%
-rear struts getting a little bouncy but OK.
-headlights are fogged and we need to either buff them or buy new ones.
Some options I see...
1. suck it up, pay for the repair, and hope nothing else breaks.
2. New engine/rebuild engine/get a refurbished engine and keep the car for another 150k miles. This could be $5000-$8000. I've read that you can get the higher quality, double coated stainless steel head gaskets. Not sure about this.
3. Trade in the Subie and get a lightly used car that we'll use for 10-15+ years - but what kind?? Another Subaru? Apparently Subaru solved the head gasket and timing belt issue after 2013, but the dealer told me that and I don't know details. We considered getting a Honda Fit or similar efficiency car for improved mileage. However, we love the size of the Subaru and its main purpose is to get us OUT of the city with all our gear. When we have a family, we will be camping, hiking, etc. for most of our recreation. I realize you don't need a AWD for many outdoor trips, and Seattle never gets snow, but we have appreciated the size and clearance.
For the record, we have no debt and a respectable stash. We could go and buy a brand-new car for cash tomorrow, but obviously we want to be more frugal than that. Thoughts?