My car needs a repair for 1k. Its with our trusted family mechanic that our family has been going to for years. He says if we do this repair, then my car should run for a few more years. To get the repair done, I would have to completely wipe out my emergency fund, and then probably start saving for a new car. To buy a new car, I'd have to also completely wipe out my emergency fund, plus have a car payment. What would you do? ***Edit*** Car is a 2002 Jeep Grand Cherokee, 230k miles on it and is paid off. The AC is broken which is miserable in the summer. So that would also add to the cost of the repair. The Jeep is worth about $1600-1900 on Kelley Blue Book. So the 1k repair is worth more than half of the value of the car itself. If I were to trade to a dealership, KBB says I'd get about $500 which would basically be the value of the car minus the repair. The way I see it, in both situations I have to wipe out my emergency fund then put probably spend $200+/month towards either a car payment or savings for a new car. If I were to buy a new car, at least that 1k would go towards the car itself, rather than having to replenish the E. F. and then save for a new one.