Depending on how the new engine is installed, the value of a car increases in Arizona because the new engine makes the car operational. However, the increase in value is usually lower than the total cost of the replacement. The resale value depends on the quality of the installation, whether there is a warranty, and details like mileage, the history of a car, and the value of the rest of the car.
The installation of a new engine, or replacement engine, may increase the market value of a vehicle. The market value of the nonoperable vehicle is affected particularly by the fact that the original engine no longer works. Usually, the value of a vehicle that is not operating is determined to a great extent by the value of its parts, scrap value, or possible repair. After repairing the vehicle, the installed engine raises the value of the vehicle, but the increase is not necessarily proportional to the expenses incurred in purchasing and installing the engine.
The Value Increase Is Usually Partial
Replacing an engine for $8,000 doesn’t automatically increase the resale value of the vehicle by $8,000. Prospective buyers consider many additional factors, such as the model year of the vehicle, its mileage, whether the automobile uses automatic or manual transmission, the vehicle’s suspension system condition, the condition of the body, title status, prior accidents, electrical system condition, equipment in the interior of the vehicle, emissions compliance, and maintenance records before deciding on the price they are willing to pay for a particular vehicle.
Not only does the engine come into play in a vehicle, but even after replacing it, the other components still show their age-related problems.
Professional Installation and Warranty Matter
When the new engine comes with complete documentation and is installed by a trusted repair shop in Arizona, it turns out to be worth more for its makers. The new or safely remanufactured engine seems to generate more interest among buyers as long as they know the installation process is handled by professionals and that they are able to obtain a warranty for the engine.
An alternate engine that does not come with proper receipts, verified mileage, and parts and labor guarantees can make potential buyers a little more apprehensive and negatively affect the added value of the repair.
The Original Cause of Failure Matters
The original failure of the engine may influence the resale value of the car. In particular, indications of a prior incident, such as overheating or a drop in oil pressure, will not necessarily be viewed the same way as a known engine design flaw.
It is common for the purchaser to require some assurance that the original cause of the failure is fixed. For instance, if a replacement engine is installed without rectifying a faulty cooling system, oil problem, turbocharger, fuel injector, or electronic control problem, the replacement engine is still likely to fail.
A New Engine Does Not Reset Vehicle Mileage
When an engine is changed, the total mileage indicated by a vehicle’s odometer will not be erased. The odometer still reflects the total distance traveled by the vehicle in all its forms including the chassis and other major components.
The odometer figure should not be presented in such a way as to give the impression that it relates only to an odometer reading of the new engine. The fact must be kept in mind that the transmission, steering gear, suspension, air conditioning, electronics, and other systems have the same age as the odometer figure indicates.
Arizona Odometer Disclosure Requirements
In Arizona, when selling your car you need to disclose your car’s correct odometer reading in the necessary paperwork. Always write down the exact mileage of your car instead of writing down the mileage of the new, remanufactured, rebuilt, or used motor.
The information about the mileage of the replacement engine should be differentiated from the overall mileage of the vehicle. For instance, in the advertisement, it may be mentioned that the mileage of the vehicle is 145,000 and the replacement engine is put in when the car has mileage of 120,000 miles.
It is necessary to estimate the mileage of a secondhand engine from evidence provided by records of the vehicle from which the engine is taken rather than from assumptions made by a third party.
7 Documents Arizona Owners Should Keep
Vehicle owners should retain the following records:
- Engine purchase invoice
- Engine part or serial number
- Vehicle mileage at installation
- Parts-and-labor warranty documents
- Repair shop work order
- Maintenance records after installation
- Donor-vehicle details for a used engine
The Bottom Line
The major advantage of replacing an engine lies in its ability to restore functionality to an inoperative car. Replacing an engine may very well improve a vehicle’s mechanical status, but it cannot create a new car or eliminate any of its previous mileage, the car’s title history, record of accidents, or wear and tear.
