What To Do?

The air conditioner on my wife's 2004 Honda CRV went out.  Went to my local neighborhood repairman who is a Honda specialist.  He is good and very reasonable.  He tells me the compressor is locked up.  Sounds expensive.  That was several days ago.  Stoped by today and he tells me he has some bad news.  He called a Honda dealership for some other parts and asked about a kit to fix everything that needs fixing.  They tell him $2200 for the kit.  WTF?  He says if he orders it, he can probably get it for about $1600.  Still, WTF?  That is not including labor.  This vehicle will be paid off in June.  We planned on driving it for several more years because I am currently driving a 2001 Honda Odyssey with 170,000 miles on it.  I planned on driving it for another year or so and get a new one.  Now here is the question.  Do I fix the CRV and sink over $2000 into it or do I go and trade it off?  I don't know what to do.  This sucks.