Engine blew, upside down on the loan, and running out of options. Finance Advice…
I could really use some outside perspective because I honestly don't know what the smartest financial move is.
I have a 2021 Kia Sportage with around 115,000 miles. Despite keeping up with regular maintenance, the engine has completely failed and needs to be replaced. Unfortunately, I still owe about $21,000 on the loan, so l'm significantly upside down.
My extended service contract has expired, so I'm on the hook for the repair. My credit isn't the best.. Even though I work full time in a busy 911 EMS system on an ambulance, l'm also a single mom and simply haven't been able to build up savings for something like this..... I have roughly $3,500 which isn't nothing but in the situation it's also not much..
I'm trying to figure out what the least damaging option is financially. Some of the possibilities I've thought about are
Paying to install a used engine. (it's so hard to find one and still leave room for labor cost)
Trading it in despite the negative equity.
Paying to install a new engine($9k)
There is ONE more positive... i have GAP and full coverage insurance i kinda figured if i do fix it... i could 'take advantage' of that GAP in not so many words
Has anyone been in a similar situation? What did you end up doing, and if you could go back, would you make the same decision?
I know there probably isn't a perfect answer, but right now it feels like every option is a bad one. I'm just trying to make the best decision I can before I dig myself into an even deeper hole. Any advice or experiences would be greatly appreciated.