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Is replacing an engine worth it?

Replacing an engine can be worth it in certain circumstances, especially if the car has solid value and you plan to keep it for several years; for many older or high-mileage vehicles, the cost often outweighs the benefit.


Engine failure is a common reason drivers seek major repairs, and there are multiple paths to fix the problem. This article weighs the practical, financial, and reliability considerations of engine replacement, outlines available options, and offers guidance on when to proceed or walk away.


Options for replacing an engine


Below are the main paths people pursue when an engine needs replacement, each with its own trade-offs in cost, reliability, and timing.



  • Used or salvage engine: a lower upfront cost but with higher uncertainty about mileage and prior care; often the quickest option but may come with limited or no warranty.

  • Rebuilt (overhauled) engine: a thorough refurbish of the existing engine with new seals, bearings, and gaskets; typically more reliable than a used unit but not as costly as a crate or new engine.

  • Remanufactured (crate) engine: a factory-quality engine with a newer internal condition and a formal warranty; usually more reliable and longer-lasting than a rebuilt, at a higher price.

  • New OEM engine: a brand-new engine from the original manufacturer or dealer; the most reliable option with the strongest warranty, but also the costliest and sometimes not available for older models.

  • Engine swap (different engine family): replacing the original engine with a different, often higher-performance or more readily available option; can require extensive electronics, tuning, and compatibility work, and is typically reserved for enthusiasts or specific applications.


In practice, the best choice depends on the car’s value, the availability of suitable engines, and your willingness to accept risk on engine history and warranty. A well-chosen replacement can restore reliability, while a questionable used engine can lead to repeated failures.


Costs and considerations


Costs vary widely by vehicle, engine type, and regional labor rates. The numbers below reflect common ranges observed in the U.S. and similar markets in recent years; actual quotes can differ significantly.



  1. Used salvage engine installation: typically about $3,000 to $7,000 total, including labor and basic fittings; risk includes unknown mileage and limited or no warranty.

  2. Rebuilt engine installation: roughly $4,000 to $7,000 total; offers improved reliability over a used engine and often includes a modest warranty.

  3. Remanufactured/crate engine installation: generally $5,000 to $9,000+ total; strongest reliability and warranty level, with higher upfront cost.

  4. New OEM engine installation: commonly $6,000 to $12,000+ total; highest reliability and warranty, but not always available for older models or certain makes.

  5. Specialty engine swaps or performance-oriented installs: price can exceed $8,000 to $15,000+ and may require extensive compatibility work and tuning.


Concluding: When evaluating these options, it’s crucial to consider the car’s current market value, how long you plan to keep it, and the total installed cost, including potential future maintenance. For some vehicles, a replacement engine makes financial sense; for others, upgrading to a newer car tends to be a safer bet.


When it makes sense to replace an engine


Vehicle value and condition


If the vehicle’s value after a proper engine replacement remains higher than the total cost of the swap, and the rest of the car is sound (frame, suspension, brakes, and body), an engine replacement can be a prudent investment. This is common for well-maintained vehicles with strong resale values.


Expected remaining life and maintenance costs


Consider how many years you expect to drive the car and whether other major components are approaching the end of their lifespan. If several years of reliable operation are plausible and other maintenance needs are manageable, an engine replacement may pay off.


Availability and viability of replacement engines


Part availability matters. For some makes and models, suitable engines—especially low-mileage or factory-reman units—can be scarce or expensive, extending downtime and complicating logistics.


Warranty, reliability, and risk


Warranty terms for the engine and workmanship influence risk and total cost of ownership. Remanufactured engines and reputable shops typically offer longer warranties that cover parts and labor, reducing the risk of another costly repair soon after the swap.


Bottom line: Replacing an engine makes sense for some drivers, especially when the car holds value, the replacement option is reliable, and the total cost fits within a reasonable budget. For others, particularly with older cars or depreciated value, replacing the vehicle may offer better long-term value.


Practical steps to take before deciding


To move forward confidently, gather information, verify shop qualifications, and explore multiple quotes. The steps below help ensure you’re making a well-supported decision.



  • Obtain multiple, written quotes from independent shops and dealerships; compare what is included (gaskets, belts, cooling system work) and estimated labor times.

  • Ask about the replacement engine’s history, mileage, and whether it comes with a warranty; confirm the exact engine model and compatibility with your VIN.

  • Check shop certifications (ASE or manufacturer-trained technicians) and the terms of the engine warranty, including coverage for labor.

  • Understand emissions and registration implications in your area; some jurisdictions require inspection or re-certification after major engine work.

  • Request a detailed, itemized invoice that lists all required ancillary work (cooling system, sensors, transmission interface, ECM tuning) to prevent cost surprises.


Concluding: A transparent quote, clear warranty terms, and a realistic project timeline are essential to making an informed decision.


Summary


Replacing an engine can restore a vehicle’s utility and reliability, but it is not universally the best option. The decision hinges on the car’s current value, expected remaining life, available engine options, and the total installed cost, including labor and potential follow-up maintenance. For some owners, a carefully chosen engine replacement is financially sensible and practically sound; for others, selling or trading the car in may offer a cleaner, more predictable path to mobility. Always pursue multiple opinions, compare warranties, and weigh the full lifetime cost before proceeding.

What are the cons of replacing the engine?


Cons:

  • Higher Cost: New engines can be costly.
  • Potential Compatibility Issues: A new engine may require additional adjustments or modifications to fit properly depending on your vehicle's make, model, and year.
  • May Be Overkill: If your vehicle only has minor engine damage, a complete replacement might be unnecessary.



How long will a replaced engine last?


100,000 to 150,000 miles
The Average Lifespan of a Rebuilt Engine
Typically, a well-rebuilt engine can last 100,000 to 150,000 miles or more, offering a lifespan comparable to a new engine. Modern diagnostics and machining tools have greatly improved the precision and reliability of rebuilt engines.



Is it better to replace an engine or buy a new car?


It's better to replace an engine if the cost is less than half the car's value and the rest of the vehicle is in good condition, as this extends the life of your current car at a lower cost than buying new. However, buy a new car if your current car has significant other problems, you value modern features and a full warranty, or if the engine replacement cost exceeds your budget or the car's value. 
Replace the engine if:

  • The car is otherwise in good shape: If the body, transmission, and other systems are sound, a new engine can give your car many more years of life. 
  • Cost is a major factor: Replacing an engine is often significantly cheaper than buying a new car, especially since a new car loses value immediately after purchase. 
  • You have a warranty: If the engine replacement is covered by your vehicle's warranty, it's the most cost-effective option. 
  • You like your current car: If you're emotionally attached to your car and want to avoid payments and hassle, replacing the engine is a good way to keep it. 

Buy a new car if:
  • The engine replacement cost is too high: If the cost of replacing the engine is more than half the car's value, it might be wiser to put that money toward a new vehicle. 
  • Your car has other major problems: If your car also needs new brakes, suspension, or has other costly issues, a new car may be a better long-term investment. 
  • You want a warranty and modern features: A new car comes with a warranty, lower initial maintenance, and the latest technology, which a replacement engine won't provide. 
  • You can get a good deal: You may find that a new car is a better value if it comes with special financing, rebates, or incentives. 

How to decide
  • Calculate the cost: Get quotes for both engine replacement and a new car (or a comparable used car) to compare total costs, monthly payments, and long-term expenses. 
  • Assess the car's condition: Look beyond the engine. Check the body, interior, and other mechanical systems to determine how much life they have left. 
  • Consider your budget: Decide whether you can afford the upfront cost of an engine replacement or the ongoing monthly payments and insurance of a new car. 



Is it worth fixing an engine on a car?


Sure. It's simple economics. If the fixed car will provide reliable service long enough that the cost of repairing it is less than replacing it, then do it. Once a worn/old engine is properly rebuilt, the car is significantly more likely to operate reliably for another decade.


Kevin's Auto

Kevin Bennett

Company Owner

Kevin Bennet is the founder and owner of Kevin's Autos, a leading automotive service provider in Australia. With a deep commitment to customer satisfaction and years of industry expertise, Kevin uses his blog to answer the most common questions posed by his customers. From maintenance tips to troubleshooting advice, Kevin's articles are designed to empower drivers with the knowledge they need to keep their vehicles running smoothly and safely.