<prompt> Human: Car recently started leaking coolant, and what was originally thought to be bad O-ring seals turned out to be a crack in the engine block; a 350 repair just added an extra 0 and then some. Ive got a quote from a friend for a used engine with 111k miles on it for 3k, or a new engine from Honda done at Honda for 4500 2008 Civic EX-L w navi, 151k miles. Last month, I went to Carmax, and they offered me 3k for the car. Ive had Captain Hindsight shouting at me for the past few days now, saying that I shouldve taken that and ran, but there were no signs of major issues with the car then or leading up to the leak happening.As mentioned in the title, I owe 4700 on the loan, but KBB values it at 3600 for a trade-in and 4800 for private party, both using Fair condition Requires some mechanical repairs...The engine compartment has leaks and may require repairs. NADA says 3800 for a Rough trade-in significant mechanical defects requiring repairs in order to restore reasonable running condition.I do have GAP insurance on the car, but Im afraid that if I try to file a claim with my insurance company Progressive, Ill get turned down, my account flagged, and an increase in my rates. Now, I currently have small accident forgiveness and come Monday when the policy renews, I get large accident forgiveness, while my current deductible for non-collision is 100. The crack is highly likely to have not been caused in an accident previous accident in 2014, so I doubt either of these will help my case, but even if it was caused by it, it would be incredibly hard to prove it.As a side-note, I do start a new job at the end of the month with a solid bump in pay 18 jump, so I do have extra wiggle room come first paycheck in mid-April. Ive also already gotten pre-approved through my bank NFCU for a new loan, so I have that going for me...Essentially, Im asking if I should: Take it to Carmaxdealer for trade-in, cut my losses, and pay the difference out of savingsnegative equity on the loan of a new car File a claim in hopes they deem the car totalled, and let GAP take care of the restIm leaning towards the former, but would love to hear if anyone else has gone through anything similar. UPDATE Thanks to u_korrupt_ and uReadAllAbout, I may actually qualify for a Honda recall for my model year for cracked engine blocks and leaking coolant I have an appointment scheduled Sunday afternoon with the nearby dealer. Lets see where this goes.UPDATE 2 I dropped the car off Sunday with Honda, and ran into an old friend of mine whos working there now. He confirmed to me that my car does qualify for the engine block repair under warranty thank you sweet, merciful baby jesus, and I should be getting the car back today or tomorrow. I ended up asking for an appraisal, and they came back with 2500 after repairs, of course. I know weve mentioned KBB doesnt really go very far, however, just as a baseline, this car in Good condition would net me about 5300 on a private party sale. While that puts me over, I dont see myself getting rid of it once I have it back in working order. ucatholicwannabe2 really put it into a perspective that I never really thought about: You know what would really nickel and dime me to death? A 350 car payment for the next 5 years. Blah.UPDATE 3 Tuesday afternoon, I got an update on my Civic, which is now facing leak issues with the power steering pump and rack. The leak itself isnt so simple, as its not just a gasket or line that can be replaced. The pump and rack both should be replaced to fix the leak. After talking it over with other auto-inclined friends and my parents, Ive decided to forgo the power steering repair, and Ive chosen to sell the car. I get that this is going to be met with a lot of criticism this is rpersonalfinance afterall, but I feel that this is the best move. Ive already landed a deal with a newer Civic, and have brought her home. I should be getting the car back tomorrow, and shes going up on the auction block shortly afterwards.Thanks to everyones advice, especially those who pointed out that the engine block was covered under warranty you seriously lifted a tremendous amount of stress off of me.  <response>: OP, sounds like you have a lot of handles on this, along with avenues to pursue. So I just want to make a more general comment about spending more than a car is worth on repairs, which is a decision you may be facing now and almost certainly will be facing in the future. It is often the absolutely best decision you can make financially to sink 2.5k into a car that youre only able to get 2k for from a dealer. There are lots of reasons why that may be the case:1 Dealers and other buyers arent offering you what your car is actually worth. Theyre offering you what they think they can get you to take for it. 2 The KBB numbers dont reflect your specific car. They only reflect an average of cars like yours. Your car may have been driven more gently, better maintained, stored indoors, washed regularly in the winter. Etc.3 The KBB doesnt account for the value of the time you have to spend selling your car, buying a new one, and then getting right with your state government. That time is valuable. 4 Usually the thing youre fixing isnt going to go bad again during the reasonable lifetime of the car. Thats not factored into the average car price on KBB!5 Most people dont choose between spending 2k getting their car back into working order or spending that same 2k on another currently functional beater. Most people are actually choosing between the one-time 2k expenditure and committing to a new or used car payment of several hundred dollars for years and years. Seriously, I took my car to the mechanic yesterday fully expecting that I might need to put a new engine in it. It was leaking oil rapidly out of nowhere. My dad said now its just gonna nickel and dime you to death, time to find a new, reliable one that wont break down on you. You know what would really nickel and dime me to death? A 350 car payment for the next 5 years. Blah. Anyway, just arguments in favor of fixing it if it comes to that. Obviously your situation may vary or whatever. 