One of my customers had this financial bridge to cross several months ago. He owns an immaculate 2006 GMC Sierra crew cab SLE with 200K on the odometer. The engine needed replacement. We discussed the "big picture" considerations:
1) How much is a replacement or new truck going to cost"
2) What else will go wrong that is considered big ticket?
3) Is this truck worth such a large expenditure?
I advised him as to the cost of the engine. I also informed him that the next "Achille's Heel" is the M30/ 4L65 automatic transmission. In addition, the original A/C compressor, which worked fine, had reached the very outer wear limit in terms of the airgap of the driven plate to the drive pulley, and, since the compressor had to be removed during engine R&R, it would save time and money to just go ahead and install a compressor kit.
He is an accountant with a major corporation, and so he mulled over whether to spend upwards of $70,000 on a new truck, or put about $14K into this repair, all inclusive of an engine with 4 year, unlimited mileage warranty, a Jasper transmission assembly with all the upgrade modifications to insure it's longevity with a 3 year/ 100K miles warranty, a new factory flywheel, new motor and trans mounts, new drive belts and tensioners, new factory heater hoses, new thermostat and water pump, spark plugs, and reman starter.
Considering the body of the truck and the interior are in like new condition, and there is zero rust anywhere, (He is originally from near Green Bay, Wi.) he chose to repair the truck.
It has turned out extremely well for him, and he doesn't face all the caveats of new vehicle depreciation, being saddled with a big payment AND inevitable costs of repairs.
I'm seeing this trend much more frequently in the past 4 years, especially with older folks from the generation who have bought houses much, much cheaper than what new vehicles cost today.
