How to Price a Used Car With a New Engine?

How to price a used car with a new engine

Buying or selling a used car is never simple. Mostly, people try to sell their old cars because they are not performing as well as expected, and the owner wants to invest in a newer car. In most cases, the cars seem to be broken down in one way or another. One of the most common problems is a faulty engine. Many car owners sell their cars when the engine does not work anymore. But, some try to use a replacement engine to boost the price with a new engine.

A used car with a new engine will be valued higher than the same car with a broken engine. Most sellers know that a well-running used car will bring in a higher amount than a broken-down car. So a lot of used car owners try to change the engine, which can elevate the worth of the entire car. The new engine can give the functions of an almost new car at a lower cost for the buyer.

Engine Replacement in Used Cars

Engine replacement in used cars in the used car market is not that common, as owners tend to not sell a car they have invested in to get the engine changed. But, in some cases, the owners tend to deliberately try to replace the engines in cases of engine failures. The resale value of an old car can increase a lot with the addition of a new engine.

Used Engine

In used cars, a completely wasted engine can be replaced with another used car engine that works better. In this case, the cost of replacement labor will be the same as replacing the engine with a completely new one.

Rebuilt Engine

Sometimes, the repair shops repair used car engines and sell them to be replaced with the engine of a used car. The rebuilt engine may work better than the current one, but it does not add much value to the car. If the vehicle is sold to a dealer, then the extra cost of labor will have no effect.

New Engine

By new engine, we are talking about the completely new, officially approved engines sold by flagship dealers and manufacturers. This original engine attached to an older car vastly increases the value of the car. This can make the car almost as good as new based on the other issues with the car.

Used engines do not perform as well

Engine Replacement Costs

Changing the engine of a used vehicle seems like the biggest decision to be made by a seller. This can be a bold choice to make as it can add value but also can do the exact opposite. The problems with a car engine might not stem from a faulty engine. The problems could lie with the spark compartment, oil tank, etc. This means changing the engine will not solve the issues.

Cost of the Actual Engine

Replacing the engine of an older car can be quite expensive. In fact, this is one of the most costly repairs of a vehicle. To make the car as good as the new vehicle, the replaced engine needs to be brand new. Otherwise, there is no point in changing the used engine of poor condition with another used one.

A new engine may cost as much as $4,000 to $7,000. A 4-cylinder domestic economic vehicle engine can be bought at $4,000, and the cost increases with the complexity and type of the model. On the other hand, used engine prices depend on the vehicle’s age, model, type, and miles used with the engine. The used engine pricing can range from $400 to $700.

Labor Costs

The biggest risk of changing the engine of a used car is the cost of labor. It does not matter what type of engine you want to use; the repair will take just as much money. An engine installation can take up to 15 hours which can be very expensive. Sometimes, the labor cost is not worth the final result.

The amount quoted by the repair shops varies based on the shops. From low-end to the more high-end shops, the difference can be quite high. The hourly rate can be quoted from $90 to about $150. Thus, an engine replacement may cost around $1,200 to $1,800. Sometimes, the cost is not worth it if the outcome is not satisfactory.

Labor costs are very high.

Peripheral Repairs Cost

In practical scenarios, just changing the engine is not enough. With the engine replacement, there are other issues that arise or stem from engine faults, such as water tanks, oil compartments, combustion issues, etc. Repairing these parts is mandatory for the new engine to work well. But in most cases, the average cost of labor always exceeds the expense of the actual parts.

Sometimes, even though the initial appraisal makes it look like the engine of the used car is at fault, that might not be the case always. If there are any problems with the other peripheral parts of the car, the change of engine will not make any positive impact other than emptying your wallet with high costs of parts and labor.

How New Engines Can Affect the Car Value

Potential buyers always look for the best value at the lowest cost. But individual buyers seldom tend to g for a car that does not run well because repairs cost a lot of money. For this specific reason, buyers tend to buy used cars from used car dealers who acquire cars from auctions or private sellers and then perform the necessary repairs before putting them up for sale.

  • Used engines have a history of accidents, wear, and mileage. So they will not be performing as well as a new car bought directly from the manufacturer.
  • The issue with this is that dealers do not want to pay a lot for an old car. The owners need there to be a specialty, an extraordinary edge to the car. This is why owners try to replace the car’s engine with a new engine. The new engine can easily boost the value of the vehicle. The added value is then translated into monetary worth.
  • Buyers will be willing to pay a higher price for a used car with a new engine. The engine will then likely carry the issue of the car price and help the buyers make the decision.
  • Adding a used or rebuilt engine to the car is a great way of rebuilding the car, but the added value is almost non-existent; only the lifespan of the car might get extended for a few years.
  • If the replaced engine is new and has the same or similar features to the original engine that came with the car, then the value of the car can get increased very fast. The second-hand car has the potential to become as good as a new car.
  • The market value of the car increases by a lot and surpasses all the similar cars of the same brand in no time. The rebuilt car can be sold at 70% to 75% more than the actual value of the car.

Used cars with new engines can bring a lot of money

Be Wise in Making Decisions

Without proper knowledge about the market and the inner workings of a car can often lead someone to make a big mistake. Someone who does not know how to make tough decisions that revolve around the automobile market, then they are of no use at all in selling a vehicle. So instead of making rash decisions about what to do, it is mandatory to get some info first before you go around making important decisions.

Any wrong decision to change the engine can lead to a high amount of loss and regret. If you cannot sell a car and make some profit by actually brainstorming to make a decision, then the whole thing is useless. So first, getting some ideas and then making decisions makes more sense in the long run.


The value of a used car and the quality of its parts go hand in hand. If the parts are all faulty, then the price of the car will never be high, even with flashy and trendy exteriors. Customers look for good quality cars that can b bought with as much money as possible. This is the reason used cars with new engines have the potential to become more and more popular. Selling your old car is a game of perception and negotiation.

It is up to you to get the best possible return for your car. As the used car market has been expanding day and night, it is very saturated with good and cheap cars. To make yourselves stand straight in the used car market, the goal is to increase the charms of your car. This is why replacing the engine and other parts can become very popular. But you need to be careful and plan wisely with proper knowledge about these things before you actually proceed.

Get Your Offer Now

Start by getting an offer on your car in under 2 minutes.