Repair the XTerra. Do everything at once if possible to save on the repair cost
I believe in 10% auto budget. Never pay more than 10% of your annual income for a car. You better be making 700k if you are going to buy a 70K Tundra but alas folks are probably paying 25 to 30% of their income on cars, So I only bought a new car once and was so disgusted with the payments I paid it off in 9 months.
And some useless - I like to talk about me stuff. Feel free to read the next post
When my inherited 97 RAM got rear ended, I got another 97 Ford F150 with a winch it probably get's 15. I bought a small tuner so that it can keep up with the interstate speeds here out west where it is 75+ and we have hills,. I am an overland backpack hiking kind of guy with destinations taht would beach a Subaru (and I use to love Subarus until I moved here 26 years ago) I am definitely priced out of the lifestyle wheels like Tacomas and 4runners, so older RAMs and Fords for me. Can haul a cord of wood as well and with the camper top - can haul my upright bass. I can sleep in it and haul 4 to 5 big dogs,
I also have 2 post diesel gate VW Station TDI wagons - I gave one to my son since he works and the nicest fully loaded one is my wifes. True not lie o meter but hand calculated pump MPG of 48 to 55 (Yeah 55 out east where the interstate speeds and elevation is lower). These guys can haul a lot of stuff more than ford small SUV or even a Tiguan
I also wrench, so I can do shocks, brakes, radiator changes , maybe even a CAM and if have access to lift a clutch. I have good mechanic friend now, Around 50 an hour for most jobs and he allows me to help and we do it as his house, he works for a high end European car repair. My son if helps me is a good resource - has rebuilt the engine of 2 Miatas and out old Bimmer but he is now busy at work and a girlfriend and you know how that goes.
I have a 1 ton diesel truck, that has a lot of miles and our horse business days are over. I thinking to consolidate into a better truck and own that for the rest of my life or a Sprinter van . I may have break the 10% rule for that but that's why I put some for a 401K and savings, might as well enjoy a bit before you die.