I owe $13,000 on my car, but it suddenly needs a new $9,000 engine I can’t afford that. What am I supposed to do now? Aditi Ganguly Mon, September 14, 2026 at 3:45 AM PDT 9 min read zamrznutitonovi/Envato Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Cars have become a huge burden for many people, with the average monthly payment for a new vehicle coming in at $770 in the first quarter of 2026 and the average payment for a used car totaling $531 (1). And that's just the base cost of ownership that doesn't even include the cost of gas, insurance or repairs. With such high prices, it shouldn't come as a surprise that over half of all drivers (58%) admitted in 2025 that they couldn't afford a car repair costing $1,000 or more (2). Top Picks Jeff Bezos backs a platform that lets anyone invest in rental homes for as little as $100 6 ways to build wealth like a landlord without actually being one A record 45% of central banks plan to grow gold reserves and many investors are following suit. Get your free gold IRA guide from Priority Gold A single line on your car insurance policy could be inflating your premium by up to 30% here's what to change Unfortunately, if you're one of those Americans, you may find yourself facing a difficult choice if you have a vehicle that does end up requiring expensive repairs. Let's say, for example, that Samantha has a car she owes $13,000 on and it's worth about the amount she owes. Unfortunately, the vehicle needs a new engine, which she can't afford, as it costs $9,000. The good news for Samantha is, unlike close to 30% of Americans turning in their vehicles, she's not underwater on her vehicle (which means owing more than it's worth) (3). But since it's worth the amount of her loan, she can't sell it at a profit and walk away either. She's facing an impossible choice: fund repairs she can't afford that cost more than half the car's value, or buy a new car, which could be an even bigger financial burden. When does it pay to make a costly repair? The first thing Samantha must decide is whether the repairs are even worth paying for. And the answer may not be what you'd expect. "If a car is worth $13,000 and needs a $9,000 engine repair, don't make the decision based on those two numbers alone," Alan "Ollie" Gelfand, automotive repair expert and founder of German Car Depot in South Florida, told Moneywise. "Look at the condition of the rest of the car and its maintenance history. Is the mileage low? Is the transmission good? How about the suspension and electronics? Does the replacement engine come with a warranty?" Gelfand explained that if the car is in excellent condition and buying a dependable used car would cost the same or more, it may be...
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