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Should I replace my 2011 Carnival?

Our regularly serviced 2011 Kia Carnival has a sludged-up engine at 90,000 km. We were recommended a new engine, but it is a few months out of warranty, and we are the second owner, so our goodwill warranty claim was denied. We're looking at getting a 2012 VW Multivan or 2012 Mercedes Valente to replace it? We are thinking the Kia Carnival is not worth fixing? What are your thoughts? We have 4 kids under 6 years old and a budget of $25,000 if we were to buy a new car.

I would get a second opinion on the Kia's engine before you do anything else. A sludged-up engine suggests a lack of servicing, but if no damage has occurred you might be able to salvage it. I wouldn't recommend either a Multivan or Valente, those you are looking at are too old and potentially too expensive to run and repair. A seven-seat SUV might be a better option.