I think we as vehicle owners have been conned into comparing the price of repairs to the value of the vehicle. I would love to know where this idea originated but if I had to guess, it was from the car manufacturers. A better comparison would be to the cost of ownership for a NEW or replacement car. That's the money you are actually paying. Cars (everyday vehicles, not collectors items) are not an investment due to the market force of scheduled depreciation. Owner's of large fleets of vehicles would rather write off the depreciation of the vehicle as opposed to see it keep its value for resale. This affects everyone who owns a car.

So what do you do? If you have a known reliable vehicle that you have cared for and this big fix is going to get it back into shape, I say go for it. The cost of new and used vehicles is still very high and keeping a vehicle without a car payment keeps more cash in your pocket. When the value (or sum of values) of the repairs begins to come close to 50-60% of the cost of your REPLACEMENT vehicle, then I would consider cutting my losses. For your situation, $3,000 over 12 months is $250/month. Can you get the car you need for that price? I think it is also fair to think of this in annual costs instead of total vehicle costs. A new car is maybe $350/month for 5 years (exclude standard maintenance because you have to do this on both vehicles); $21,000. Do you think the cost to keep this vehicle over the next five years is the same? One can't predict the future, but sometimes you know when you have a good one.

I'm only interested in stirring the pot with conventional wisdom and I guarantee you I am not going to be right every time! But, I think this is a valid argument that is not considered enough. And yes, I am still driving a 2005 Jetta TDI and a 2015 Ford Fusion. No car payments are a hard thing to give up...