Yeah, this is a no brainer, if you don't drive more thank 2k a year why take on debt or waste your money. You probably don't even need a car as some have mentioned, but obviously depending on where you live or what you do I'm sure it's nice to have.

Wheel speed sensor should not cost $900. For as infrequently as you drive it I probably wouldn't worry about though it does disable your abs so factor that into your safety or usage equation. Worn tires can also cause vibration, so I'd say tires and an alignment should fix your vibration issue.

I dunno how bad the engjnes reliability is, but keep the oil changed regularly, every 6 months or so regardless of mileage and run it regularly and it should last. Just take the money you would spend on a new car now and invest it so when/if the engine goes you can just dump this car and move on if you need to.

I'd look into selling it and doing short term rentals or turo or other car sharing services. I assume you live in a city with such low mileage, so between depreciation, insurance, possible parking costs, registration/taxes, it seems like you could just borrow cars and save money long term.