Going to play out as much info as I can so my trusty internet strangers/friends I haven't met yet can possibly help steer me correctly.
One week ago my 2018 Jeep Cherokee trailhawk lost its ability to drive. I'm told this is due to failure of the transfer case and was quoted $3600 to repair. There is no warranty.
Vehicle details are as follows: Black Cherokee, 105k miles, I currently owe $17k at a disgusting interest rate of appx. 14%. I bought this car as an emergency because my Nissan Altima, two years ago last month, had its transmission fail and I was in a bad spot. Now I find myself in an even worse position.
Credit is 500s due to a few cards being at max and student loans that I thought were frozen but was not the case, and I'm working on an IDR plan now.
I spoke with friend of a friend who is employed as a salesman, his back office team valued the trade at $7k, leaving $10k negative equity if I was looking to trade. I have about $1000, maybe $1500 available to
Me, so I can't just up and fix the vehicle, but also the salesman is looking for around $3k down and I just don't have it.
I don't know if it's better to figure out how to fix the vehicle, but then I'm putting serious $$ into a vehicle that has had oil and transmission fluid leaks and is sitting at 105k miles. If I did this and something else hapoened, I'm incredibly screwed. Conversely, sales guy wants to put me into a GMC Terrain, 2022 with 15k miles priced around $25k. But there's the negative equity and my car payment would go from $460 to probably somewhere at or over $800, when it's already difficult to make the $460.
I absolutely need a vehicle and cannot rely on public transportation for myriad reasons, most important of which is my children and transporting them to school and activities.
TL:dr I have a dead Jeep Cherokee that I owe $17k on, has been valued at $7k as is, and need to determine if I should pursue the fix and make payments while taking risk of another major repair, or trade in now and take a massive hit via the negative equity. I am fine with any constructive criticism, I just need to hear from people who don't want to see a father doing his best get the screws put to him.