How Much Does It Cost to Replace an Engine?

How does a car engine work?

An engine creates power through internal combustion, during which fuel and air create a flammable mixture. This mixture is compressed by pistons, increasing its pressure and temperature. An ignition spark plug then causes a controlled explosion, which forces the piston downward and rotates the crankshaft. The piston then moves back up, pushing out the burned gases through the exhaust valve.

Each cylinder fires in sequence, creating continuous rotation. The fuel system delivers gas to the engine, the air intake system supplies clean air for combustion, the cooling system circulates coolant, and the lubrication system minimizes friction and wear. This process repeats thousands of times a minute while your car runs, but if any components fail, a chain reaction can lead to damage or total engine failure.

Signs of engine failure

There are several things to look out for if you think your engine is failing, including:

A check engine light

Most modern vehicles have a light that indicates when the engine’s sensors detect a problem. It can indicate minor issues, like a loose gas cap, or major issues, like engine failure. To determine what caused the check engine light, you have to scan the system using an On-Board Diagnostic II (OBD-II) code reader.

Decreased performance

Engine failure can manifest in reduced performance, leading to issues like poor fuel efficiency, power loss, engine misfires, stalling, failure to start or overheating.

Strange noises

Unusual sounds from the engine bay can indicate engine failure. If you hear knocking, thumping or grinding noises, especially during acceleration or deceleration, you might have engine issues.

Increased exhaust

A sudden increase in the amount of exhaust your engine produces usually means something is burning that shouldn’t be. You may be able to tell what’s burning by the color of the new smoke.

• Black smoke is a sign that too much fuel is making it into the engine
• Blue smoke generally comes from burning engine oil
• White smoke comes from burning antifreeze or coolant

Excessive oil consumption

The most obvious symptom of car engine failure is excess oil consumption. Oil works both as a lubricant and as a coolant for the engine, and once there's a lack of oil, the parts will start to wear extremely quickly.

“If you need to refill the oil every few days, it's a big sign that you should either get rid of the car or prepare a bunch of money for repairing the engine,” said Petar Dzaja, owner of Car Detailing Planet.

Oil or coolant leaks

Oil or coolant spots on the ground under your vehicle could be a sign of engine failure. If a leak is caught early enough, it may not be an issue, but if your car has been leaking for months, the lack of fluids may create other problems.

What are your options if your engine has failed?

If your engine has failed, your mechanic will likely give you several solutions to choose from:

• Brand-new engine: Brand-new engines are by far the most expensive option, but they tend to come with the best warranties and will typically last longer than any other option.
• Remanufactured engine: Remanufactured engines are torn down and rebuilt by specialized technicians and can often be just as good as new engines for a lower cost.
• Used engine: Used engines, including those from salvage vehicles, come straight out of vehicles in junkyards and may be of unknown quality.
• Rebuilt engine: Having a technician rebuild your current engine may be cheaper than installing a new or remanufactured engine, but it involves some level of risk.

There’s no single best option for every case. Ask your mechanic which options you have and which one they’d personally recommend.

How much an engine replacement costs

You can typically expect to pay between $2,000 and $10,000 for an engine replacement, according to our research. However, engine replacement costs can vary depending on the type of vehicle you drive and whether you’re fitting a brand-new engine or a used one.

For context, labor typically costs between $70 to $150 per hour, and it typically takes 10 to 25 hours for an engine swap.

» MORE: Average car maintenance costs

Engine replacement pros and cons

Consider the pros and cons of replacing an engine:

How much it costs to rebuild an engine

A full engine rebuild involves disassembling and inspecting the damaged components, then reassembling the engine using new or remanufactured parts. It usually costs between $2,500 and $4,000, depending on the type of vehicle you drive and the extent of the damage.

Remanufactured, salvaged and rebuilt engines can sometimes be close in price to brand-new engines. Still, if your mechanic is certain they know the problem, a rebuild may be the most cost-effective option.

Engine rebuild pros and cons

Consider the pros and cons of rebuilding an engine:

Is it better to rebuild or replace an engine?

If you’re leaning toward rebuilding your engine rather than replacing it, consider the following to make sure it’s the right choice:

• Age and mileage: If your vehicle has high mileage or is nearing the end of its life, a rebuild may not be the most cost-effective option in the long run.
• Overall condition: If the engine failure is an isolated issue and the rest of the vehicle is in good shape, rebuilding the engine may be a suitable choice.
• Future plans: If you plan to keep your vehicle for an extended period of time, investing in an engine rebuild may be worthwhile. But if you're considering selling or upgrading soon, the impact on resale value may not be worth it.

Deciding between rebuilding or replacing your engine can be tough. To make the best decision for your specific situation, consult a trusted mechanic who can work with you to determine the best option for your vehicle.

Does a car warranty cover an engine?

Most factory warranties cover engine replacements or repairs. Still, keep in mind that auto warranties generally only cover repairs needed due to factory defects. If your engine fails due to damage (like from a collision or extreme weather), misuse (like racing or off-roading) or negligence (like missing oil changes), your warranty provider won’t cover the issue.

Most factory and extended warranties cover engine replacements or repairs.

If your car isn’t under its factory warranty anymore, the cost of an engine replacement can make an extended auto warranty worth considering, especially if you drive a model with known reliability issues.

A bumper-to-bumper extended warranty typically costs around $1,000 per year of coverage. But if you just want powertrain coverage (which will cover your engine), your cost could be around half of that.

Cindae, a reviewer from Pennsylvania, was happy that they got an extended warranty.

“[I] have said repeatedly that I’m so glad that I had the extended warranty,” Cindae said. “All of the repairs were covered, a torque converter [and] an engine!”

Just know that extended warranties don’t cover preexisting conditions, so you need to sign up before your engine starts showing signs of failure.

» MORE: Best extended car warranty companies

Can you finance an engine replacement?

Engine replacements can be a significant expense, and not everyone has the cash on hand to cover it. Fortunately, there are several financing options available to help manage these costs:

• Auto repair loans: Many financial institutions offer personal loans that can be used for car repairs, including engine replacements. These loans often come with fixed interest rates and predictable monthly payments.
• Credit cards: Using a credit card can be a quick way to finance an engine replacement. However, this option can lead to high interest charges if the balance isn't paid off quickly.
• In-house financing from repair shops: Some repair shops offer their own financing programs or have partnerships with financing companies to help their customers pay for major repairs.
• Emergency funds: If you have an emergency savings fund, this is the type of expense it’s meant for. Using emergency savings can help you avoid taking on debt.

Make sure to compare rates, terms and conditions across different financing options to find the best fit for your situation.

FAQ

Bottom line

If you think there’s something wrong with your engine, visit a mechanic immediately. They’ll run some tests and inspect your vehicle to figure out what’s causing the problem. If they determine your engine is in poor condition, they can either rebuild it or replace it entirely. It’s important to talk to a reliable mechanic who can accurately assess your engine's condition and advise on whether replacement is worth it.