Car trouble...advice needed

[overcome]

Here's the story

I owe $12,000 (yes, that is three zeroes) on my 2003 Mercury Mountaineer with 60,000 miles on it. I bought this car used, 2 years ago, with 30,000 miles on it. Two months after I had it, the transmission had to be replaced. The car dealer paid for this, no problem.

Apparently, now it has a MAJOR problem with the engine and there is a very good chance the engine needs to be replaced to the tune of $4000 (again, three zeroes).

I think I am stuck. If I try to sell it with this problem, I'm sure I will get a VERY low amount. If I fix it and sell it, there is NO WAY I will get close to $16000.

I think I have to fix it and keep it (!) b/c I owe so much $$ on it. If the engine does get replaced, it will be under warranty for 100,000 miles, which is essentially like a new car since both the engine and transmission are new.

The thought of sinking $4000 into a car literally makes me sick to my stomach.

Any advice? I am still going to ask the dealer for a price on it w/o getting it fixed.

This sucks.

TIA for any insight you can offer.

[bubbaray]

Can you get a quote/second opinion from a non-dealer mechanic?

Yeah, SUVs are pretty much worthless these days. Bummer.

FWIW, our daycare provider has a 2002 Explorer and has had NO END of problems with it.

Hope you find a solution!

[ThreeofUs]

Oh, what an awful choice. ITA with Melissa; take it to another couple shops (look on Angie's List for reputable non-dealer car repair places) and ask for their opinions.

Good luck.