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2001 Subaru Outback vs 1998 Volvo V70 XC

What car should I keep? A 2001 Subaru Outback (I purchased new) with 103K miles, or the 1998 Volvo V70 XC with 160K miles?

The Outback needs a total break job, and some work to the transmission. I just had the head gasket replaced because it was leaking on the manifold, and now it is still leaking. Currently at the shop to see if it is a transmission leak.

A friend just sold me her Volvo V70 XC for 4,000, and offer I could not turn down. It is running in pristine condition (she had regular service through a volvo dealer), some small cosmetic issues with the car, but nothing major.

I was planning on fixing the Subaru up and selling it, but now I am having second thoughts. What do you all think?

Sell them both and buy a newer more reliable vehicle.

Or fix the Outback and keep both of them. Older cars will be less reliable. Having 2 of them means that you will always have one that is running, as long as you fix them when the break. If you have to sell one, sell the Volvo if you can get more than $4000 for it. Unless your friend will be angry and you want to keep her as a friend.