How Does a New Engine on a Used Car Affect Price?

by Jeremy Cato
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Selling a used car can be difficult under any circumstances, but a used car equipped with a new engine can definitely improve the selling process and have a net positive effect on the price.

Enhanced Performance

A brand new, factory-made engine in a used car is definitely a selling point. A used car with a new engine can command a higher price than the same car with the original engine. This is obviously because of the fact that the new engine will have none of the wear and tear of the original engine and should, therefore, enhance the vehicle's overall performance.

Explaining Used Car Price

Organizations such as Edmunds and Kelley Blue Book use depreciation models to determine the current value of a used vehicle based on the original manufacturer's suggested retail price and current operating condition. So, a new engine in a used car that was once in poor condition may elevate the condition to good or very good and thereby increase the selling price that could be offered.


Just because the engine is new does not necessarily mean that the vehicle will sell for a price any higher than the Kelley Blue Book value. This is because those prices assume that the vehicle is already in good working condition, with an engine that is functioning well. The addition of a new engine does not make the entire car "new" and it cannot be sold as such.

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