OT Advice on auto transaction please

[CNY rider]

Insights appreciated on this situation:

I am currently driving a 2007 Subaru Outback, almost 9 years old. I hoped to get another 2 years out of it but my wife has been dropping hints about reliability when she drives it in the winter. Those hints have gotten loud enough that I need to get a new one.

Three weeks ago during our last snow of the season I had a low speed accident. Lady spun her pickup truck in front of me, I hit the rear side panel at 5 or 10 mph. No injuries, no airbag deployment.
Her insurance co. is accepting liability for repairs to my car.
Damage to my car: Big gash/crack in front fender which is popped out of its mounts. Small scrape on front of hood. Small chip in one headlight body u p away from the lens, which still works.

I went to a good local body shop who estimated $1700 for the repairs. Her company saw the pictures, read our statements and is sending me a check for the $1700.

I also showed it to my trusted mechanic who said for about $50 he could pop everything back in place. Of course this wouldn't fix the crack in the fender or the chipped headlight or the hood.

So the question: I am going to trade this car in for the new one in the next couple of months. Does it make financial sense to get the repairs done properly or to just get the $50 quick fix, pocket the check for $1700, and trade it in with the cracked fender and other minor issues?

[FlashUNC]

The cracked fender and whatnot will accelerate the decline in whatever residual value is left. If you're trading it in, in my experience, dealers LOVE to lowball over that kind of stuff.

If its not coming out of your pocket, I'd get it fixed the right way.

[AngryScientist]

pretty sure there is no way i would put 1700 into a car i was about to trade in with no guarantee of return on investment.

you probably dont want the hassle, but i would suspect where you live you could sell that car privately with the $50 repair to someone for well over what the dealer will give you on a trade.

[kevinvc]

Similar to a bike helmet, the bumper is meant to absorb the force of impact. It might not show much damage, but its structural integrity is compromised. Personally, I would not feel comfortable ethically selling a car with that kind of issue to someone.

[eddief]

giving away money compared to selling it yourself...in most cases. It actually sounds as if it is a pretty good car and the used car market is good these days. If bucks are important to you, I'd suggest getting the check...and then go shopping for a much better repair deal. Many body shops will do it for less if you if you are willing to pay cash. Once fixed, go to the dreaded craigslist and sell it yourself.

[SlackMan]

pretty sure there is no way i would put 1700 into a car i was about to trade in with no guarantee of return on investment.

you probably dont want the hassle, but i would suspect where you live you could sell that car privately with the $50 repair to someone for well over what the dealer will give you on a trade.

^^^This is what I would do, and I agree with the expectation.

[christian]

If you are going to trade it in, repair for the $1700. You'll get hit for more than that on the repair from the dealer.

If you're selling privately, knock $1000 off the price and fix the car for $50.

[MattTuck]

The one advantage to trading it in towards a new vehicle is that it is quick. If you have the time and attention to try to sell it yourself, more power to you, you'll probably get more.

I kind of figure that selling to a dealer as part of an entire new car purchase can be a win or a lose depending on your negotiation of the whole deal. You can get royally screwed or come out ahead, it is all in the negotiations. If it were me, that is where I'd start. Atleast see what the dealer will offer you before you sink the 1700 into it. That 1700 could be a big chunk of a down payment on a new vehicle.

[John H.]

What is wholesale/retail kbb value?
If the accident drops this value too much, you may want to consider repair.
In my experience used Subaru cars sell very quickly in any condition.
My wife sold one with a bad head gasket, 200k miles and 11 years for 2k.

[PQJ]

See what you could get in a third party private sale right quick. If an acceptable amount for as is condition, apply that plus the $1700 plus the $50 you would've spend on el cheapo repair towards car of your dreams (which better be a German thoroughbred of some kind).

[Ken Robb]

A new car dealer would probably wholesale a car like yours to a used car dealer who handles autos not nice enough for the new car dealer's lot. To keep the trade value totally separate from the new car price you might want to ask a few used car dealers for bids. Then you can decide how much work you are willing to do to net more $$$.

[Ralph]

I would keep the $1700 and get the $50 fix. if you trade it in, it will wind up on some used car lot somewhere, and they will fix it good enough to sell for a very few dollars. They can fix it far cheaper than you can get it done. Most cars that age have some cosmetic damage. Just get it fixed up to that state. A scratch and dent guy can do wonders for $50. Or a body shop guy on his own time.

[rnhood]

Agree, do a minimum fix and keep on driving it. At this point you are no longer loosing value on it so enjoy it. Those Outbacks are suppose to be good for the long haul....I think. Not sure about the CVT transmission if yours has this but, otherwise the car is only 8 years old. It should have a lot of life left.

[djg21]

$1,700 buys some nice wheels.

[malcolm]

If you have one of the big multi state used car dealers in your area, our local one is CarMax, take it there and see what they'll give you for it with and without the repair. It'll cost you nothing and I've found them to be a very accurate predictor of trade in value.

One other thing to remember on trade in is it does save you some on taxes although even accepting this you usually do better to sell yourself.

I do agree I'd have to prove to myself the 1700 was a worthwhile investment. Most dealers with a body shop could do it for far less if for no other reason than they already have the labor force on the payroll.

[pdmtong]

you might get the money back if you sink the $1700 into the car, you might not.

if me I would take the $50 fix and keep the sure ($1700) thing.

as others have noted, car folks can fix things a lot cheaper than you can pay someone to fix things.

move on...it's only $1700 so dont worry if you gain or lose a few hundred. take the path of least resistance.

[staggerwing]

Probably not worth putting $1700 into. Don't know how many miles you have on it, but at 9 years old, I doubt it is worth more than $3-4k. That is too much money to put into a repair at this point. If you are a little patient, you might be able to find a used fender that could be painted to match, although you would still likely be around $1000.

Might go back to your trusted mechanic, that offered the $50 repair, and inquire if he has an interest in purchasing the vehicle. If you have a longstanding relationship, he will likely show an interest, as he knows the true condition of the car. He might also facilitate a transaction to another customer, in which case you should pay him a brokerage fee. As noted, Subies in almost any condition, will sell. Helps considerably that you are in snow country.

A dealer will likely push a car that old through an auction, regardless of how repaired, and as such, will only offer minimal amount. As you likely know, they will often make it look like more, by adjusting how much they are willing to deal on the new piece. A separate transaction will make it more transparent. In 33 years driving, I've only purchased 3 new vehicles, and have always elected to not mix a trade-in into those purchases.

[Nooch]

PM Sent :) It's gotta be more reliable than my '99 CRV, right?

[oldpotatoe]

Insights appreciated on this situation:

I am currently driving a 2007 Subaru Outback, almost 9 years old. I hoped to get another 2 years out of it but my wife has been dropping hints about reliability when she drives it in the winter. Those hints have gotten loud enough that I need to get a new one.

Three weeks ago during our last snow of the season I had a low speed accident. Lady spun her pickup truck in front of me, I hit the rear side panel at 5 or 10 mph. No injuries, no airbag deployment.
Her insurance co. is accepting liability for repairs to my car.
Damage to my car: Big gash/crack in front fender which is popped out of its mounts. Small scrape on front of hood. Small chip in one headlight body u p away from the lens, which still works.

I went to a good local body shop who estimated $1700 for the repairs. Her company saw the pictures, read our statements and is sending me a check for the $1700.

I also showed it to my trusted mechanic who said for about $50 he could pop everything back in place. Of course this wouldn't fix the crack in the fender or the chipped headlight or the hood.

So the question: I am going to trade this car in for the new one in the next couple of months. Does it make financial sense to get the repairs done properly or to just get the $50 quick fix, pocket the check for $1700, and trade it in with the cracked fender and other minor issues?

Do the $50 fix, sell it on Craig's list...trade-ins, altho easy, are a $ loser.

[CNY rider]

Agree, do a minimum fix and keep on driving it. At this point you are no longer loosing value on it so enjoy it. Those Outbacks are suppose to be good for the long haul....I think. Not sure about the CVT transmission if yours has this but, otherwise the car is only 8 years old. It should have a lot of life left.

This is what I would do but in the interest of maintaining marital harmony it's not what I am going to do.:beer:

[SoCalSteve]

My local NPR radio station is always hawking on about donating used vehicles. They will write you a donation letter for the full Kelly Blue Book value of the car, no matter what condition it is in.

Pocket the $1,700.00, don't even bother to throw the $50.00 into it. Donate it and get a HUGE tax write off...it's a win - win situation.

$1,750.00 is a nice start to a good down payment on a lightly used, low mileage replacement Subaru.

Good luck with whatever you decide!

[SpokeValley]

$1,700 buys some nice wheels.

It would buy a nice used complete bike ;)