How/When to sell my Benz...
 

1991 300D, 2.5 Turbo - 125K miles
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Dealer quotes $6.5 K for repairs. Pretty much whole engine overhaul. New engine costs roughly $8.0K to replace, includes 3-4 year MB warranty etc.

There is a chance I will move out of the country within 1 yr, but as early as in 3 months. Small chance to take the car with me ... My thoughts are :

1. Sell the car as is, buyer repairs car.
2. Go with the engine replacement, sell the car before I leave (if i do)
3. Go with the repairs and get the 1 yr dealer warranty

Right now I am thinking that its difficult to go with option 1. Not even sure how much money I can make from the car, and who I should contact. Car is at the shop, cant keep it there for ever

Option 2 seems to be the most likely, rather than option 3 which only saves $1-1.5K but I dont get the warranty.

Do you think that having a MB warranty will help me in selling the car? This is my first MB , not sure how the market feels about it. I bought mine from an individual, i didnt go through papers etc..

Thanks

Andreas

What is the problem with your car that warrants a $6500 repair?

Read my previous postings (under userid "athan01") - In short, snapped timing chain, bend valves, camshaft etc)

THIS IS WHAT YOU DO!
 

I was doing some thinking about your situation. While fixing the car will take a lot of money, and selling it will be a huge loss (you may get a few grand at best) you should DONATE the car and get a TAX WRITE OFF FOR THE BOOK VALUE of the car. If you donate your car, you will get the tax break off the taxes, which could work in your favor. I know a lot of organizations that will take your derelict car and give you book! That's a whole lot more than a few grand and a whole lot less than 8g out of pocket. Just my Finance BS doing the talking, good luck!

Donating the car and taking a tax deduction is only useful if you pay enough taxes to itemize. May or may not be the case here.

Here's another idea. Why not install a used engine? Used engines are reasonably available from wreckers such as Potomac German Auto, AAA Small Car World, etc. Most test the engine and give a bit of a guarantee. I bet you can purchase an engine, have it shipped in and installed, and get back on the road for half the cost you've been quoted.

Of course, the dealer probably won't be interested in going this route. You may have to move the car to an independent shop.

Given that you plan to use it for perhaps another year at most, this is likely the least expensive way to get back on the road.

I don't think I would go for the rebuild.......too much money for a year warranty...MB gives you 48mo 50K on complete engine assembly...that alone is worth the extra $1500.....I would either donate the car if you can write off the book value or I would pay the 8K for the new engine....with a new engine with a 4year MB parts and labor warranty your car should bring a premium over others of that age and mileage if you decide to sell

Warren
1992 300SD 126K
Columbus Ohio

Donating wont work...
 

Donation wont work... I called a donating organization already, that gave me a blue book value of $15.4K. However, any donation about $5K requires a signed appraisal (that costs around $250). Large donations raise the red flag for IRS and it may cause an audit.
I am not sure that the appraise will give a high enough value to the car, that its going to worth donating. ..

back to the drawing board .....

What you need to determine to help you decide is how much you can get for it now. Hypothetically, if it costs you $8000 to repair it and you can sell it for $12000 in a year, then you should keep it if you can't get more than $4000 for it as is.

A counterpoint to the dealer warranty (and I'm probably in the minority) is that I'm suspicious of the kind of person that can destroy an MB engine. I know the engine failure wasn't your fault, but as a potential buyer I have to wonder what else is about to go in a dramatic way that isn't covered by a warranty.

I've had good luck with used engines and transmissions. I say have an engine shipped up from Atlanta-Stutgart or Potomac and have an independent install it. Chalk what you'll pay the dealer to experience.

Sixto
91 300SE
81 300SD