I bought a 1994 Honda Accord for $2000 last year and put $1000 on it since. It drove perfectly until a few weeks ago there was smoke and burning smell from the engine while on road. I managed to drive it 3KM back home (wrong decision).
I don't know what was actually wrong with the engine. First 30 minute drive was OK and it suddenly stalled with both oil light and check engine light went off with temperature point at maximum.
On the way home, smoke came out from under the bonnet where the engine located. And it smelt burning. The car stalled every hundred meters and it took a few attempts to restart again. It was making big noise. I didn't see any fluid leakage as well.
I didn't start the car since and am facing the dilemma: no car yards or buyers would pay more than $200 for it despite all other parts are in good condition (I paid way more that $200 on the tyres and brakes). If I'm to sell it unregistered, it means all the $3000+ are gone.
If I want to repair I don't know what can be done to make the car running again. Tow cost is expensive. The worst is to replace the engine. A secondhand engine costs $700+ and I am yet to find a garage willing to do the labor.
Any suggestions? Shall I forgo the $3000 and buy another one or hold onto the Accord?
Probably head gasket. There are cheap temporary solutions for this using liquid seals with no professional labour costs.