My rx8 broke today and is at the dealer. I need some advice assuming worse case scenario of a new engine. This is my first and only car, never been through a car cycle yet so bear with me.

A new engine is perhaps $5-$6k? Ok, so currently the rx8 is financed, with $5k left on the loan. The loan started in 2005 for $31k. On hand, I can spend $10k.

1. Buy a new engine and keep.

-$6k upfront, continue driving until it breaks again. Continue making loan payments until it is paid off next year.

2. Buy a new engine, stock exhaust, front spoiler lip, front aero lip, driver's shade, muffler bumpers (burned through), repair rear quarter panel damage (tight fitting garage), and trade it in.

-$9k upfront, perhaps make $9k on a trade-in? Break even if I'm lucky, then upgrade to a better coupe. Involves some risk as I'd never know what it would trade in for, after spending that money to repair it. Especially since I would be going to another company, rather than the Mazda dealership for my next vehicle.

3. Payoff loan and buy a new engine.

-$10k, no loan payment, continue driving until it breaks again.

4. Payoff loan and junk the car.

-$5k, no loan payment, upgrade to a better coupe.


Am I missing something, or does it sound like my best option is to payoff the loan on my broken rx8 and junk it?

 

I think what you are missing is that your engine is covered under warranty to 100k miles. So you can get a new engine for very little.

 

^ +1. Get your *** to the dealer.