How does replacing an engine impact the resale value? Add? Subtract? No difference?
I am considering buying a 2002 Ford Explorer XLT that I am told has had the engine replaced, but no details as to why, who replaced it, or what the miles on the new engine are. On test drive the vehicle performed very well and seems to be in excellent condition. To confirm whether the price is fair, should I adjust for the new engine? Is there a way to get details about t rebuilt engine? The CarFax report on this vehicle makes no mention of it.
So how do you know the engine was replaced, if you have no other details? Is it at a dealership and was traded in? A newer engine shouldn't effect much on a 12 year old car. IMO, might be a good thing that you have a new one vs a tired worn out one. But could have seen water and hydrolocked. Have a 3rd party mechanic look it over for you prior to purchase.
Not knowing the price makes it hard to determine if its priced correctly. For me its pretty simple, It lowers the price and I would keep looking. Something has caused a complete engine failure, there are too many unknowns on this SUV. No maintenance records or engine replacment info, make it hard to tell how the rest of the SUV was taken care of. Also the new motor could already have 200k+ miles on it. Another one will pop up unless they are giving this one away.
If the carfax does not show the engine replacement it was done by a small shop, in somebody's back yard, or not at all. Reputable service facilities report to carfax these days. The salesperson may be just telling you the engine was replaced to get you to buy it. I'd keep shopping. There's a better vehicle waiting for you out there. HTH. -Jim
I would put a negative on price from what your question states, no info on when, where, and no receipts. I would not buy it personally unless it had a recent receipt of a genuine Ford crated engine and where it was installed. Note: family negative experience with similar.
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