Engine Replacement Cost: How Much Is a New Engine for a Car?

Mechanic working under the hood of a vehicle, tightening a clamp on the air intake hose during an engine replacement.

If someone just told you your car needs a new engine, your first thought would be, “How much is the engine replacement going to cost me?” The short answer is anywhere between $4,000 to over $10,000. Ofcourse, it’s not cheap! However it depends on the model of your car as well as the type of the engine you want to get.

Some drivers luck out with a used engine for a couple grand, while others end up with a five-figure bill. It all comes down to what kind of car you have, where you get the engine, and who’s doing the work.

Let’s break down the cost of engine replacement with real numbers, options, and a few hard truths about replacing car’s engine.

What’s the Average Engine Replacement Cost?

Here’s a quick look at what you might actually pay while replacing your car’s engine:

Engine TypeParts OnlyWith Labor (Estimate)
Salvage/Used Engine$600 – $4,000$1,800 – $6,000
Rebuilt Engine$2,500 – $4,000$3,500 – $6,500
Remanufactured Engine$3,000 – $6,000$4,000 – $8,500
Brand-New Engine (OEM)$4,000 – $10,000+$6,000 – $15,000+

Keep in mind: Labor alone can run between $1,200 and $3,000, depending on the shop and the car. Swapping an engine takes anywhere from 10 to 25 hours, and shops charge roughly $100 to $150/hour in most U.S. markets. 

Also Read: Average Cost to Maintain a Car

Key Factors That Affect the Price

Vehicle Make & Model

A new engine for a Toyota Corolla won’t cost the same as one for a BMW 5 Series. Mass-market engines are easier to source and cheaper to work on. Luxury or high-performance models require specialized tools, more time, and pricier parts.

Engine Type

Is it a basic inline-4 or a twin-turbo V8? 

Naturally aspirated engines are cheaper across the board. Add turbochargers or hybrid systems, and you’re adding cost.

Labor Costs

Installation is no small job. Newer cars have more electronics and tighter engine bays, which slow down even experienced techs. If you’re in a major city, labor costs will go higher.

Where You Get the Engine

Buying a used engine from an unauthorized store costs a lot less than ordering directly from the manufacturer. Remanufactured options fall somewhere in the middle and often come with decent warranties.

Warranty & Parts Quality

Longer warranties and OEM parts usually gets the prices higher. Aftermarket or rebuilt options can save money, but there might be some risks as well.

New, Used, Rebuilt, or Remanufactured Engine

New Engine

  • Never been run before
  • Factory direct or OEM-spec
  • Highest cost, longest lifespan
  • Best for new or high-end cars

Used Engine

  • Pulled from a wrecked or retired vehicle
  • Cheapest option, no guarantees unless tested
  • Good for older cars or temporary fixes

Rebuilt Engine

  • Your current engine, repaired and reassembled
  • Cost-effective if damage is limited
  • Results vary depending on who rebuilds it and what the problem was

Remanufactured Engine

  • Fully torn down and restored to factory specs
  • New or refurbished parts inside
  • Great middle ground between new and rebuilt
  • Usually includes a warranty

Is It Worth Replacing Your Engine?

Worth It If:

  • Your car is otherwise in good shape
  • It has low mileage and decent resale value
  • You’re emotionally (or financially) invested in keeping it

Not Worth It If:

  • The vehicle has high miles and other looming repairs
  • Rust or transmission issues are already creeping in
  • You’re looking at a $10,000 repair on a car worth $5,000

If the repair cost is more than half the value of the car, start considering selling it as-is or scrapping it!

Also Read: Why is My Car Overheating: Causes and What to Do?

DIY vs Professional Installation of a New Engine

Swapping an engine isn’t like changing your car floor mats. 

You need a hoist, serious mechanical skill, and a lot of time. It can save you a couple of thousand dollars on labor, but mistakes here aren’t cheap. Modern engines are tied to sensors, ECUs, and emissions systems that need proper reprogramming.

“Even seasoned DIYers often regret tackling a full engine swap solo,” says Sean Kim, a mechanic based in Atlanta. “It’s not just physical labor, it’s electrical, coding, and precision.”

If you’re not 100% confident, this is one of those jobs better left to a trusted shop.

What About Warranty or Insurance in Engines?

If your car is still under a powertrain or bumper-to-bumper warranty, check your paperwork. Manufacturer defects can mean full coverage, including labor.

Older cars might be covered by extended warranties if you opted in. Powertrain warranties alone can cost $400-$800 per year and may be worth it for vehicles known to have engine issues.

Car insurance rarely covers engine failure unless it’s tied to an accident or a covered event (like flood damage). Neglect, wear, and tear? That’s on you.

Frequently Asked Questions

Is it worth replacing an engine in a car? 

“As long as the transmission or other major components are in good shape and you are planning to keep the car longer, it’s worth it replace an engine in a car,” says a Reddit user on Ask Car Sales. 

Is it cheaper to buy a new engine or rebuild it?

According to Kelly Blue Books, rebuilt engines are a cost-effective option that involves replacing worn or damaged parts, but may offer shorter lifespans and only basic warranties.

Final Thoughts

Engine replacement is one of the most expensive repairs you’ll ever face as a car owner. But it doesn’t always mean game over. Depending on your vehicle’s condition and your budget, you’ve got multiple options to replace your engine.

Before you dive in, take a step back. Get a second opinion from a mechanic you trust. Ask questions like how long the new engine might last, what kind of warranty it comes with, and whether it makes more sense to just get a different car.

This isn’t a decision to rush. Just be smart. A replacement engine could add years to your car’s life or it could turn into a money pit. So run the numbers. Think about how much you’ve already put into the car, what it’s worth, and how long you want to keep driving it.

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