Hi everyone.

I'm facing a service dilemma with my XC90, and as I'm not really mechanically inclined, I thought I'd see if anyone here has any advice or thoughts on how I should proceed.

I own a 2007 XC90 (3.2L engine model) which has a little over 111,000 miles. I've owned it since 2008 when I bought it as certified pre-owned from my local Volvo dealer. I love the car and have been hoping to keep it for many years, so I've meticulously kept up with the recommended service intervals for as long as I've owned the car and have the work done at my local Volvo dealer.

I dropped the car off for an oil change and regular maintenance earlier this week, and a couple of days ago I received a call from the service representative stating that the mechanics were hearing an unusual noise from the engine area. They thought it might be an issue with the AC compressor (I believe that was the part), so with my permission and what would have been approximately a $1500 repair, they tried installing a new AC compressor but found that the noise was still present. The good news is that I won't be charged for that repair, but the bad news is that they now think the issue may be something much more costly.

Apparently the XC90 engine is gear driven (as opposed to being belt driven), and their suspicion is that there may be an issue with one or more gears within the engine. The problem is that the process involved to assess the gear situation is quite labor intensive, and I've been told that there's a chance that the issue could be even worse than expected once they inspect the inner workings.

Bottom line, based on the labor involved (they're estimating 20+ hours) and parts, I'm being quoted an estimate of $3700, which could possibly even increase depending on what they find.

The car is driveable now, and they said that doing nothing is certainly an option, but there's no telling if or when this issue would render the car undriveable, so I have a bit of a dilemma. On one hand, I love the car and would like to keep it well maintained, but on the other hand I'm questioning whether it's worth putting at least $3700 of repairs into a 2007 vehicle which probably has a trade-in value now of around $5000. I suppose another option would be to get a second opinion from a different European car shop, although up to this point I've had all of my service performed at the Volvo dealer.

The sad thing is that the car really isn't that old, and this being my first Volvo, I was really hoping I could get 150K or more miles out of it without any major issues. So, what would you do? Would you proceed with the repair, or just keep the car running as long as possible without the repair and perhaps start looking for a new car? At the moment, I'm leaning toward the latter.

Thanks for any advice!