Engine Options: The Case for New vs Reman vs Rebuilt

Compare Your Engine Options at a Glance

Picking the right engine option is critical to your short- and long-term success. Use this quick best-practices guide to determine which option best aligns with your goals, budget, and reliability needs.

 

Option 1: NEW — Original Equipment (OE)

(Brand-new engine from the manufacturer)

Pros

  • Maximum reliability with all-new components
  • Full manufacturer warranty
  • May increase resale value

Cons

  • Highest-cost option
  • Warranty work must be completed at OE-certified facilities
  • Potential fitment modifications required
  • Long lead times — may not be available when needed

Best Fit If You…

  • Want the most “factory new” experience
  • Prefer dealership-backed warranty support
  • Have high budget flexibility
  • Plan to keep the vehicle long-term and want top resale value

 

Option 2: REMANUFACTURED

(Fully dismantled, precision-cleaned, machined, and manufactured to OEM standards)

Pros

  • Manufactured to original—or better—quality
  • Often features better lead times
  • Includes manufacturer parts & labor warranty
  • Strong cost + reliability balance

Cons

  • Warranty labor rates may be lower than OE dealership rates
  • Costs more than a basic rebuild due to comprehensive machining/testing

Best Fit If You…

  • Want OEM-level performance without OEM-level pricing
  • Need the best quality-to-cost balance
  • Want faster availability to reduce downtime
  • Prefer full warranty protection without dealership restrictions
  • Expect a long service life backed by rigorous OEM-equivalent testing

 

Option 3: REBUILT / REFURBISHED

(Selective repair—only visibly worn parts replaced)

Pros

  • Lowest upfront cost
  • Good option if the vehicle will be sold or traded soon
  • Convenient—can often be completed locally

Cons

  • Quality varies widely by shop and parts used
  • Shorter lifespan—only some components replaced
  • Little or no warranty protection

Best Fit If You…

  • Need the lowest immediate price
  • Plan to sell or trade in the vehicle soon
  • Accept a shorter expected lifespan
  • Prefer or rely on a local repair shop

 

Cost Comparison

Total Cost Calculator

New Engine Remanufactured Engine In Chassis Overhaul
Purchase Price $20,000.00 $16,000.00 $8,000.00
Installation Labor Hours x Labor Rate $3,900.00 $3,900.00 $5,250.00
Additional Parts Cost 
(Check if any additions or changes are necessary)
$5,000.00 $0.00 $2,000.00
Equipments Daily Earning Potential X Days of Downtime $7,500.00 $7,500.00 $15,000.00
Total $36,400.00 $27,400.00 $30,250.00