Worth fixing before selling

Tiny
LYUBOMYR SAVCHUK
  • MEMBER
  • 2005 SUBARU LEGACY
  • 4 CYL
  • TURBO
  • 4WD
  • AUTOMATIC
  • 130,000 MILES
Hey guys. I have the vehicle listed above GT wagon. It has got a ton of problems. Dealership inspected it and quoted me $7,700.00 to fix everything. Obviously I'm not getting it fixed at a dealership, that would be dumb. Anyway, it has got a blown head gasket, bad control arm bushings, oil pan leaking (I'm suspicious, it's valve cover gasket, not oil pan), passenger side camshaft is leaking, and shock absorbers are leaking. Someone at the dealership is actually interested in buying it, since he'd been looking to buy a lgt wagon, and couldn't find one. I took it to my friends shop, he said that it will cost around $800.00 to replace the head gasket, and if the whole engine needs to be rebuilt, that will cost around $1,500.00. My question is, should I sell it as is or repair the engine and then sell it? Is it worth repairing? Obviously I'm getting a really good deal at the repair shop, so I thought it might be worth repairing it first? Thanks
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Thursday, January 16th, 2020 AT 6:53 PM

3 Replies

Tiny
KASEKENNY1
  • EXPERT
There is one variable that we don't know yet. What is he willing to give you as the vehicle sits? In other words, not repaired?

Unless he is going to absolutely low ball you (like $500.00 or less) then I would not fix it. The value of the vehicle appears to be around $2,500.00 to $2,800.00 so we don't put potentially $1,500.00 in it just to get a couple hundred dollars more. If they are going to give you $800.00 for it, then why spend up to $1,500.00 just to get $2,500.00 which is $200.00 more than just selling it as is. The reason is, once he gets into it, the bill can rack up quick because he finds things he didn't know where an issue. Happens all the time.

If you can get $800.00 or more for it, I would just sell it as is. If this person is going to offer $500.00 or less, then it may be worth while to see if there are others that will pay more or you could at that point entertain fixing it. Again, keep in mind your margins are tight so any money you put into it should only be to make it sell-able. This means you have no takers for it as is and have to put money into in order to sell it.

Sounds like if it were me, I would see what this person offers and then tell them that you can get more if you fix it. So if you fix it you are going to want a higher amount. This may put some pressure on them to up their offer and at that point, I would sell as is.

Let me know if you have questions and please run these numbers yourself just to be sure I didn't get them wrong.
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Friday, January 17th, 2020 AT 2:21 PM
Tiny
LYUBOMYR SAVCHUK
  • MEMBER
Okay, I forgot to mention, the KBB value on this vehicle is complete nonsense. They run anywhere from $4,500.00 to $7,500.00+ on OfferUp and Craigslist. This particular model, with turbo and wagon design is really rare. So if it had no problems, I would not sell it for less than $5,000.00.
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Friday, January 17th, 2020 AT 2:51 PM
Tiny
KASEKENNY1
  • EXPERT
Okay. Well that changes your numbers. It may be worth it then but just be careful not to value something based on what people are asking for them on different websites. Just because someone asks a certain price doesn't mean that is what it is worth. Something is worth only what someone will pay for it.

The principal of what I said is still the same. Basically get all the facts of what this person will pay for the vehicle as is and fixed. Then just do whichever where the math works in your favor.
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Friday, January 17th, 2020 AT 6:54 PM

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