Any help on this would be greatly appreciated. My 2005 Mini Cooper, manual transmission, has 82K miles. About a month ago, I noticed a loud sound coming from the engine when at speeds above 60mph. Over the next few weeks, the noise started happening at lower speeds as well, 30mph and up. Took it to the dealership and was informed that I needed a new transmission, which came as a great shock to me. Quote to replace is $3,600.
I took it to a transmission specialist for a second opinion. He determined that it likely was the differential causing the issue but that this couldn't be purchased alone as Mini will only sell the entire transmission, not specific parts for it. Quote to replace is $3,300.
Along with the transmission, the dealership also said that I have three oil leaks, need the water pump replaced, air conditioner recharged, control arm bushings and rear breaks replaced. Plus some misc work adding up to $6,500, which includes the new transmission.
I own the Mini free and clear, but blue book value for excellent condition is only $7,800 (trade in) to $9,700 (private party). What would you do if you were in my situation?