Is it cheaper to engine swap or buy a new car?

When your car’s engine starts to fail, you have an important decision to make: Do you pay for an engine swap to replace the dying motor, or is it more cost-effective in the long run to just buy a different used car? There are good arguments on both sides of this issue, so it pays to carefully weigh your options before making a major investment of time and money into an aging vehicle.

What is an engine swap?

An engine swap refers to removing the existing, worn-out engine in your car and replacing it with another, often newer and better-performing engine. This is a major repair job that involves disconnecting and removing the old engine, modifying engine mounts and connectors as needed, installing the new engine, reconnecting hoses, belts, wires, sensors, and fluids, and testing everything to ensure the new motor works properly with the car’s transmission and electrical systems.

Mechanics may source a used replacement engine from a junkyard that matches your car’s model and year, purchase a remanufactured or rebuilt engine, or in some cases install a newer and bigger motor that wasn’t originally offered for your car’s make and model. The latter option can provide a nice power boost, but also requires more custom fabrication to make everything fit and work correctly.

Cost factors for an engine swap

An engine swap is a labor-intensive process that requires special tools and expertise. Here are some of the main costs involved:

• Cost of the replacement engine itself. This can range from $1,500 for an economical used motor up to $5,000 or more for a premium remanufactured crate engine.
• Labor for the engine removal and swap. Book time for this job can easily exceed 20 hours at $100 per hour or more, so expect to pay $2,000 or more in labor.
• Misc parts – New motor mounts, gaskets, hoses, belts, fluids, adapters, wiring harnesses, etc. These small parts can add up to $500+.
• Towing fees if you can’t drive the car to the shop.
• Any repairs needed to make the new engine work properly with the old transmission and peripherals.

With all factors included, the total bill for swapping a worn factory engine with a used/remanufactured replacement often ranges from $4,000-7,000. Upgrading to a larger crate engine can cost $8,000-12,000 parts and labor. Bottom line – engine swaps are not cheap, but they do allow you to refresh the heart of the vehicle often for less than you would pay for an equivalent used car.

When does an engine swap make financial sense?

Here are some scenarios where paying for an engine swap could be a smart financial move:

• You own a paid-off car and want to keep it long term. Swapping the engine allows you to rejuvenate it at a fraction of the cost of buying a comparable used car with unknown history.
• You own a rare, specialty, or collector vehicle that would be difficult or impossible to replace. Keeping it on the road makes sense even with a major engine repair.
• The body and chassis of your current car are in great shape, and you want to upgrade the engine for more power. Engine swaps are popular with auto enthusiasts.
• The rest of your car has very low miles, so it makes sense to refresh the engine to match. Often cheaper than replacing the car.
• Your engine failed prematurely or had a defect outside of warranty. Repairing the car you know and enjoy makes more sense vs. starting over with an unknown used car.

The financial case for an engine swap comes down to value – if you can get a dramatically newer/better engine installed in your existing well-maintained car for less than the cost of switching to a different used vehicle, it often makes sense to breathe new life into your current ride.

Factors favoring buying a different used car

While engine swaps can be cost-effective in the right situation, there are also good reasons why you may want to invest your money in a different used car rather than pouring cash into repairs for a high-mileage vehicle, such as:

• Your current car has very high miles and may need other major repairs soon like the transmission, A/C system, etc. It doesn’t make sense to swap the engine only to have the next weakest component fail.
• You were already considering a newer car with better technology, safety, or performance. An engine failure may be the nudge you need to finally upgrade.
• You don’t have an emotional attachment to your existing car. Shopping around could get you more car for your money.
• Your car has other significant cosmetic defects like worn interiors, damaged body panels, corroded undercarriage, etc. Extensive repairs could exceed the vehicle’s worth.
• A new engine won’t solve ongoing issues you have with your current car, like uncomfortable seats, poor ride quality, or missing features you want.
• The engine failure resulted from negligence or lack of proper maintenance. The car may not be worth extra investment.

Essentially if your current vehicle is in rough shape overall or no longer meets your needs, even a pricey engine swap may just be postponing an inevitable car replacement. The cost of the repair combined with any additional looming fixes could approach or even exceed the value of just buying a good used car to get a fresh start.

Estimated costs of buying a used car

If you decide to buy another used car rather than repairing your current one, keep in mind these typical costs:

• Purchase price: $5,000 – $15,000+ depending on age, mileage, and condition
• Sales tax on purchase: Varies by state, often 5% – 10% of vehicle purchase price
• Registration and title fees: Typically $100 – $500
• Inspection costs, emissions testing, DMV paperwork fees
• Initial repairs and maintenance for your new used vehicle
• Higher auto insurance premiums for full coverage on a financed vehicle
• Loan interest if you have to finance the purchase

The initial outlay of cash is usually higher when purchasing another used car versus just replacing the engine on your current vehicle. However, the key questions are how much useful life is left in your current car, and how much value you’ll get out of a different used vehicle down the road.

Weighing the tradeoffs

Choosing between an engine swap and buying a replacement used vehicle involves weighing multiple factors:

Engine Swap	Buying Used Car
Keeps familiar vehicle	Risks getting an unreliable “lemon”
Avoids costs of a different car purchase	Opens up new vehicle options
Cost depends on engine choice	Purchase price is a big upfront cost
Refreshes powertrain only	Everything is newer
Keeps existing body/chassis flaws	Chance to upgrade features
No finance charges if paying cash	May need to finance and pay interest
Repair and downtime hassles	Dealer fees, registration, etc.

With an engine swap, you stick with the devil you know – investing money into a proven vehicle you hopefully maintained well. Buying a used replacement car provides more of a blank slate but opens up risk and potentially higher long-term costs. There’s also the emotional factor of saying goodbye to a beloved car.

To make the best decision, thoroughly research local mechanics’ labor rates, get multiple engine replacement quotes, and evaluate the current condition of your entire vehicle. Realistically assess its useful life after a swap. Then factor in the costs, risks, and unknowns of switching to a different used vehicle. An objective cost-benefit analysis taking all these factors into account will guide you to the best value and long-term financial outcome.

Questions to ask before deciding

Here are some key questions to help determine if an engine swap or buying a used car is the better financial move for you:

• How many more years do you hope to keep the current vehicle?
• What other major repairs might be needed in the next 2-3 years besides the engine?
• Do you need significantly more cargo, passenger, or towing capacity than your current vehicle?
• Will upgrading to newer safety features make a significant difference for your needs?
• Can you afford to buy a used car in good condition without financing?
• What features or performance capabilities would a different used car provide that you don’t currently have?
• What is your emotional attachment to your current vehicle?
• How much do local mechanics charge for labor to swap your specific engine?
• How much life is left in the current vehicle’s transmission, A/C, suspension, etc?
• Are you able and willing to take on project car repairs and downtime?

Carefully weighing factors like these will lead to the best financial decision for your situation – whether that means pouring money into your current car with an engine swap, or deciding the time is right to move on to a more advanced used vehicle.

Bottom line financial considerations

While the non-financial pros and cons matter, dollars and cents considerations should drive your final decision:

• Compare quotes from several mechanics to get fair engine swap cost estimates
• Research prices online for suitable used engines and parts
• Determine the total investment to get your current car to good mechanical shape
• Evaluate resale value and usable remaining life if you swap the engine
• Factor in costs of a comparable used car purchase and any financing
• Run cost scenarios reducing swap costs (doing some work yourself) and assume high/low used car prices

Crunch the numbers for both options under best and worst-case scenarios. This will provide ranges of likely costs to help determine the better financial investment.

Examples and scenarios

To illustrate the tradeoffs and financial calculations, here are some hypothetical examples of an engine swap vs. buying a used car:

Favoring Engine Swap

Vehicle: 10-year old Honda Civic with 135,000 miles and blue book value of $4,200

Engine swap estimate: $4,500 with used engine including labor

Replacement vehicle: Equivalent Civic in good shape would cost ~$10,000

In this case, the engine swap allows keeping a well-maintained economy car on the road for potentially years for less than half the cost of replacement. Swapping the engine makes financial sense despite high miles if the body is good.

Favoring Buying Used Car

Vehicle: 8-year old Ford F-150 with 200,000 miles and blue book of $8,000

Engine swap estimate: $6,000 for a Ford remanufactured engine

Replacement vehicle: Nicer F-150 with 120k miles could be purchased for $15,000

Here, the original vehicle has high miles and would require an expensive engine swap that approaches half the cost of getting a much nicer truck. The swap would make less financial sense for this working pickup vs. upgrading.

Toss-up Scenario

Vehicle: 6-year old Subaru Outback worth $10,000

Engine swap: $5500 including Subaru remanufactured engine

Used vehicle: Similar Outback for $14,000

In this case the financial equation is closer. An engine swap would allow keeping a known vehicle for substantially less than replacement cost, but buying used also tempting due to relatively low mileage gap. More factor weighing needed!

Conclusion

When faced with a failed engine, carefully weighing the pros, cons, and overall costs of an engine swap versus buying a different used vehicle can lead you to the smart long-term financial decision. An engine swap allows pouring money into a proven asset you already own and know the history of. However, purchasing a used replacement vehicle erases risk of future repair bills and opens up new options. There’s no one-size-fits-all answer – you need to objectively assess your specific scenario.

While the numbers shouldn’t be the only factor, objective cost analysis is key. Get multiple repair quotes, determine your current car’s usable lifespan, research replacement vehicle prices, and run the math for best and worst-case scenarios. This will reveal whether the better financial move is to extend your current car’s life with an engine transplant, or start fresh by buying a quality used vehicle. Considering the tradeoffs from both practical and emotional angles helps ensure you make the best choice for your unique situation.