I need car help and/or advice

In My Humble Opinion
1

I’m not sure how much anyone might be able to help, but I’m kind of at a loss, and any advice would help.

The situation: I drive a '98 Mazda 626. It’s got about 108,000 miles, and this week I’ll make my final payment. As if on cue, this past weekend the transmission busted.

I took the car to Aamco, who said that there are about 15 parts in the transmission that are damaged need to be replaced. They said that it would be cheaper to put in a rebuilt transmission, rather than replace the 15 parts that are damaged. The rebuilt transmission should cost about $3,000. Kelly blue book value of the car is $2,850. This was the first major problem I’ve ever had with the car.

Now I can’t figure out what to do. It sounds like my two options are to either pay the $3000 to get it fixed, and drive it for another year or so to get my money out of the repairs (and hope nothing else goes wrong); or I can get a new (used) car, and try to sell or trade in this car as it is (without a working transmission). Another option is to pay to get it fixed and then trade it in soon, but I’m pretty sure I’d be losing money on that deal.

What I don’t know:

  1. Do many car dealers have some kind of minimum trade-in value, regardless of condition? My first look will probably be at the local Carmax, do they have any kind of minimum?

  2. If I pay to get it fixed, how long should I drive it to get my money’s worth? Is there some kind of general rule of thumb that says you get value out of your car if you drive it X miles per dollar spent?

  3. Does $3000 even sound like the right kind of price for installing a rebuilt transmission? Aamco isn’t trying to rip me off, are they?

  4. How likely am I to get close to Blue Book value as a trade-in? If I spend $3000 to get this fixed, then turn around and trade it in within the next six months, will I be losing a ton of money, or could I get close to the $3000 I spent to fix it?

  5. If I decide to sell the car without the transmission, what’s the best way to do that? Should I find a salvage yard, or try to sell it on my own, or try to sell it to a dealer?

  6. What would you do?

I have no idea what I’m going to end up doing. My dad’s advising me to get it fixed and keep it another year, and my fiancé is advising me to sell it without getting it fixed and buy another car. I might go either way, so any advice could help.
Thanks

2

There’s often a huge difference in the amount various repair places charge. You might try getting a recommendation for a local mechanic (not a chain or dealership) and see if you can get a better deal.

3

If I were you, I’d try to trade it in, being completely honest about the bad transmission. Because you’re trading into a used car lot, they’ll have their own mechanics and be able to fix the car cheaper than you’ll be able to fix it. With the promise you’ll buy another car, I bet they’d give you more for it than a third party would knowing the problem (normally I’d always recommend selling to a private party and taking cash to a car lot).

Afterall, you could get another $3000 car instead of buying a new tranny for yours. If the lot gives you $1000 for the trade in, then you’re not doing TOO bad for yourself.

Go for the trade in.

4

They often say this, but it’s usually something of a sales ploy, designed to make you willing to pay more than you really should for what they are selling.

My rule of thumb is at least 5 miles per dollar - 10 is much better.

You need an expert like GaryT to give you an informed opinion. My view is that it sounds a bit high, but I know nothing about the Mazda.

If the repair is done right you could probably get around book value. But I’d say it’s questionable to spend $3000 on a car that is then worth around $3000.

5

I’d recommend you read this link on 626 transmissions before you go much further in your decision process.

6

$3000 for a used tranny is way out of line. I called a buddy that has a wrecking yard and he will sell one with a one year guarantee for $1250 installed. I would suggest shopping around. I have always found Aamco to be way out of line price wise when compared to smaller independant shops. Here is a good site to check out prices for used parts.

7

If I were you, I’d cut my losses now. Sell the car for parts to a junkyard, or trade it in if you can anything for it. Then take the $3000 you are saving and apply it to buying a used car. If you decide to fix it instead, I guarantee you’ll be sorry, since the car isn’t even worth the amount you’ll be paying, and future headaches are probably coming soon.

8

Lotsa complaints about AAMCO:

http://www.ripoffreport.com/results.asp?q1=ALL&q4=&q6=&q3=&q2=&q7=&searchtype=0&submit2=Search!&q5=Aamco+Transmission&submit=Search

At a minimum, call a couple of dealers and a couple of independent shops to get price quotes on the same work. It should be pretty simple to compare prices on “how much to install a rebuilt transmission?” Maybe you can find a lower price, especially from an independent shop. Then it might be worth having the car checked out by a mechanic you trust to see what else you might need to have done in the next year or so. Mazdas generally have a pretty good reputation, so fixing the transmission might keep you on the road for quite a while. On the other hand, if you’re going to need a lot of other stuff soon, you may as well cut your losses now.

Keep in mind that if you buy a used car there’s no guarantee that it won’t need expensive work soon too. I would suggest not deciding anything until you find out more about what your car really needs and how much it will really cost.

9

I took the car to Aamco, who said that there are about 15 parts in the transmission that are damaged need to be replaced.
How was this determined? Is the transmission out of the car and apart? If so, your options are limited and lousy.

Now I can’t figure out what to do. It sounds like my two options are to either pay the $3000 to get it fixed, and drive it for another year or so to get my money out of the repairs (and hope nothing else goes wrong); or I can get a new (used) car, and try to sell or trade in this car as it is (without a working transmission). Another option is to pay to get it fixed and then trade it in soon, but I’m pretty sure I’d be losing money on that deal.
That’s pretty much it – sell it as is, fix it and sell it, or fix it and drive it.
>Sell it as is: It’s usually pretty tough finding someone interested in acquiring a car that needs major repairs and doesn’t run; if you can get someone to buy it I imagine it would be for very little.
>Sell it and fix it: As in many cases where major repairs are involved, you might be lucky to break even. If you can’t net more than selling it as is, don’t bother putting the money into it.
>Sell it and drive it: If you like the car, and aren’t aware of other significant repairs needed, this may be your best bet. You get a return on repair money spent in the form of transportation value.

1. Do many car dealers have some kind of minimum trade-in value, regardless of condition?
Only in sales hype. Any money they give for a trade-in above what it’s worth to them is money they don’t take off the asking price of the car.

2. If I pay to get it fixed, how long should I drive it to get my money’s worth? Is there some kind of general rule of thumb that says you get value out of your car if you drive it X miles per dollar spent?
I don’t think it’s helpful to look at it that way. Here’s how I’d look at it – you can invest $X in fixing the car, or you can sell the car for $Y and and then have $X+Y to buy a replacement. Which method leaves you with the better car?

3. Does $3000 even sound like the right kind of price for installing a rebuilt transmission?
Automatic or manual? Engine size? Transmission model? Nevertheless, I agree with racer72 – it strikes me as quite high.

Aamco isn’t trying to rip me off, are they?
Let’s just say they tend to have an extremely profitable pricing structure.

4. How likely am I to get close to Blue Book value as a trade-in?
You may get Blue Book trade-in value. You won’t get Blue Book retail value, or private party value.

5. If I decide to sell the car without the transmission, what’s the best way to do that? Should I find a salvage yard, or try to sell it on my own, or try to sell it to a dealer?
Dealer doesn’t want it. Salvage yard may want it, call and ask how much they’ll give you for it (don’t be crushed if taking it off your hands without charging for towing it away is the best they offer). Finding an individual who wants to buy a non-running car needing major repair is usually very difficult.

6. What would you do?
I’d find a reputable independent shop and have them advise you which options are feasible for your situation (rebuilding yours, replacing it with a rebuilt unit, replacing it with a used unit).

10

Something to keep in mind is that the transmission problem might just be the beginning of a lot of repairs. That’s usually the way these things go. The car is paid off. You’ve gotten over 108K miles of usage out of it. Might be time to trade it it in for a newer model and have more years of trouble-free driving. That’s what I would do (since you asked).