Help me make a decision or what would you do?

If its paid off, drive it until it completely falls apart and possibly double up on home payments.

 

A 17-year old vehicle could very easily need $1000-2000 right away to replace worn out parts. I'd also avoid the 2UZ as it's known for exhaust manifold cracking.

 

The only way selling and getting into a cheaper car would be worth it is if you went extreme penny pincher car like a 200$ corolla with 30$ a month insurance. Heck, take the bus until the house is paid off and then buy whatever you want