For several weeks now I have had a dilemna . . . a decision . . . and try as I can I cannot come up with a final decision and so I'm turning to you folks for input . . . usually I don't have as difficult a time coming to a decision, but on this one issue I keep going back and forth since there is no clear cut answer as I see it.
 
My dilemna is this . . . my 2000 Toyota 4Runner has a badly rusting rear differential. I've fixed it now with a temporary patch (well the garage fixed it) . . . but since the first patch failed I don't have a lot of faith in the second patch. The first patch held for several months . . . before puking up gear oil all over a parking lot in Liberty after hauling my ATV to a club ride.
 
If I opt to make a permanent repair the cost will be $700-$1,000 (not including labor). On top of this I am currently driving around with the check engine light on due to a faulty oxygen sensor (another $200) which my mechanic says shouldn't be an issue unless I notice it not running normal.
 
A little background . . . this is my "spare" vehicle. Generally I only use it for camping, hauling firewood/lumber/ATVs/sleds or for use on those slippery days in the winter. It is not my main vehicle, but on the days I use it generally I'm hauling something or going somewhere on a trip . . . it is not the vehicle I drive around the town of Unity.  
 
If you've done the math it is about 10 years old and has 114,000 or so miles on it.
 
So my question . . . keep it and fix it up . . . or sell it while it still has some value ($4,500-$5,500 to a dealer).  
 
I keep waffling on this issue since:
 
* It is paid for with no car payments every month which is nice since my wife and I are renovating the house
* It's in decent shape and has been reliable until recently
* It has relatively low miles
* I only use it intermittently and it has worked OK for my needs
 
On the other hand:
 
* I keep thinking of the cost to repair it permanently and correctly and wonder if it is worth putting into a vehicle at this age
* I find myself wondering if other components may fail on it and if this is the start to many repair bills
* My needs/wants have changed . . . I could use a pick-up now much more than I could use a SUV
 
So any input . . . any ideas . . . keep it or can it? I honestly go back and forth on this issue . . . one day I'm ready to sell . . . and the next day I think the best thing to do is keep it.

Considering the vehicle you have (Toyota 4 runner), that it is owned outright, and that you don’t use it as a primary I would fix it permanently and continue to run it with no worries and fix things as they come up. That would be the logical part of me speaking. On the other hand, I’m a car sleeper and get sick of them every couple years and always come up with an excuse to buy something new so if you want a new vehicle go buy one!  
 
In all seriousness, you have a decent car with fairly low miles on it that is made for what you want to do with it. You own it and it needs some repairs that are expected with a vehicle that is 10 years old. This shouldn’t be a reason to dump it.  
 
BTW- the high miles of a ford full size is not the same as high miles on an accord or a 4 runner. Though I wouldn’t be scared of 75K miles on an F-150 of that vintage I can’t say that you shouldn’t compare what you might spend in repairs in the next 4 years compared to if you kept your 4 runner. Probably not much of a difference.  
 
I see lots of consumers trade in between 50-85K. They do this obviously to get good money(sweet spot), but also to avoid doing tires, brakes, shocks, struts, etc. Most of these vehicles get traded with little to no work done. Don’t be that guy that spends 20K on a used truck only to have to put in a couple more grand over the next year or so…..
 
Anyway, just my thoughts but again I don’t take any advice from anyone or use any of the tools I have hear at work when I buy a car. I buy what makes me happy.  

I'm thinking along the same lines as skidor.  That F-150 will probably come with approx. a $300/month payment plus extra on your insurance for full coverage.  In 3 - 4 months the payments along with the extra insurance cost will cover the Toyota repairs and you'll still be looking at 4 1/2 to 5 1/2 years worth in truck payments, money tyhat is no longer being put into your realestate investment.  I would suggest fixing the Toyota and running it for what your intentions are, a spare beater.

Keep it, beaters come in handy all the time

Thanks for the opinions folks . . .
 
A few minor items . . .
 
I actually checked insurance costs and discovered that the insurance cost to replace this vehicle is pretty much the same . . . actually the newer vehicle would be $5 or $6 less so that is not as big a factor.
 
Also . . . I don't know if I would call this a "beater" -- more like a second "recreational" vehicle used as a spare . . . or for hauling the toys . . . and lumber and firewood.  
 
I think I'm slowly coming to a decision though . . . I think what it all boils down to is I would like a reliable vehicle and if my 4Runner fits that bill it may make sense to keep it . . . and so I'm going to make an appointment with the garage and get it up on the lift to see if there is any other excessive rusting (i.e. the rusting on the frame other Toyotas had for example) or if the mechanics foresee any potential areas that may break (of course this is just guess-timating on their part).  
 
If the 4Runner gets a relatively clean bill of health I'll most likely keep it for another year or two and will simply replace the rear differential (I have found one source that sells them for $700 and may check the salvage yards) . . . if the mechanics see anything that looks sketchy I may go for a new vehicle.

Quote from firefighterjake on 07/21/10 at 7:41am:

 
 
The insurance on the 2008 F-150 is actually less than the 2000 4runner?  That's odd.  And I was assuming you had only liability on the 4runner, while you would have to carry full coverage on the F-150 due to the loan.  Good luck with your decision.

Im glad I kept full coverage on my car after it was paid off,to me whats an extra $30 a month,specially we it was totaled,was so glad I had full coverage,I would have been screwed!! But then we didnt have a second vehicle either.

Thanks for the input guys . . . on Friday I had the garage put the 4Runner on the lift and give me their assessment . . . and their assessment sealed the deal.
 
Mechanic said there was no rust on the body and other than my rear differential and muffler he said the rust underneath wasn't bad at all for a Toyota or any other vehicle . . . more over he said he was pretty confident in his patch job on the differential so it made my decision easier.
 
At this point I'm keeping the 4Runner and will most likely run it for at least another year or two . . . in the meantime I figure I may start putting what I would have paid for monthly payments into savings for use as a down payment . . . and who knows . . . in another year or two I may even consider GM/Chevy . . . or a Toyota . . . for a future pick-up. Thanks again for the advice.

Quote from firefighterjake on 07/26/10 at 8:45am:

 
Good choice. My 98 honda just turned over 365K

Quote from Kahlua on 07/29/10 at 1:47pm:

 
Got the plow attached yet?  

Quote from Kahlua on 08/04/10 at 7:55pm:

 
I think new ones are under 50 bucks aftermarket.

nice rig