Key Takeaways:

  • A new engine can cost up to $10,000, depending on the make and model
  • A car title loan can help with the cost of buying a new engine
  • Personal loans and credit cards are also options for engine financing
  • Many factors affect the cost of engine replacement, including if it’s a used engine

A new engine can cost an average of $4,000 – $10,000. Many people don’t have enough money saved to handle such an unexpected expense and must find financing options to cover the cost.

A car isn’t something you can live without, making the purchase essential. However, it can be challenging if you have little money saved and a poor credit history. Fortunately, there are engine financing options, including used engine financing. The key is knowing how to compare them and choosing the most affordable option from the right financing company.

4 Ways to Finance Engine Replacement

You aren’t alone if you can’t afford engine replacement or cannot believe what repair shops charge to get your car back in working condition. Sixty-four million Americans cannot afford unexpected car repairs, especially a new engine, but there are engine replacement financing options you may consider.

  1. Title loans:
    Car title loans use your car as collateral to lend you funds for emergency needs, such as a new engine. These loans don’t require good credit, and lenders base your approval on your ability to repay the loan and your car’s value.
    When you borrow a title loan, you exchange your car’s title for cash. You keep the car and drive it as you need. To repay the loan, you must make monthly payments with interest. If you don’t pay, the lender can repossess the car. When you repay the loan in full, you will receive the title.
  2. Personal loans:
    Personal loans from a traditional lender typically require good credit. While some lenders allow scores as low as 580, you need a credit score of 700 or higher to get the best rates and terms. Traditional bank loans take a few weeks or more to process, leaving you without a working car for a long period. You may also find online lenders that offer personal loans for bad credit.
  3. Credit card:
    If you own a credit card with enough available credit, you may be able to charge some or all of the engine replacement cost. However, credit cards aren’t always the answer. Since interest compounds daily, the total cost can be much higher than the car repair shop originally quoted.
    If you want a credit card versus other financing options, consider using it as a supplement. Pay as much of the cost as you can in cash, and put the rest on the credit card with a plan to pay it off as quickly as possible.
  4. Borrow from friends or family
    If you’re short the total amount to replace your engine or don’t qualify for an engine overhaul or replacement financing, you may ask family or friends for help. Since a car is essential to get to work and other necessary places, you may find those around you are willing to help you get your car back on the road.

Benefits of Title Loan for Engine Financing

Since personal loans are hard to get, credit cards aren’t the best idea, and not everyone has friends or family that can help, title loans for engine financing are a great option. Here are the advantages:

  • Title loans fund fast, sometimes as soon as the same day or the next business day
  • Lenders don’t require a specific credit score to qualify; so bad credit is may be allowed
  • Many title loan lenders have an online application process that takes only a few minutes
  • You keep and continue driving your vehicle after it’s repaired; you don’t have to give it up

Qualifying for Title Loan for Engine Financing

To qualify for a title loan as one of your financing options, you must meet the following criteria:

  • Be at least 18 years old with a valid ID
  • Own a vehicle with your name on the title
  • Own a vehicle without any car loans
  • Have adequate proof of income
  • Supply coherent vehicle photos
  • Ensure the vehicle has enough equity

Engine Replacement Options

When considering the financing process and your options, consider your engine options, including a new, overhauled, or used engine.

  • New engine: A new engine is the most costly but may give you peace of mind knowing it’s brand new and hopefully free from any problems.
  • Engine overhaul: If your engine has some faulty and some good parts, a good repairman can disassemble it, replacing the faulty parts.
  • Used engine: A used engine may save you money, especially if you won’t keep the car long. Be sure to have professional help with the selection.

Factors Affecting Engine Replacement Cost

Many factors affect engine replacement costs, including:

  • Make and model of the vehicle: Some vehicle make and model engines cost less than others
  • Mechanic qualifications: A more experienced mechanic may charge more than a new one
  • Labor costs: Labor costs vary throughout the country, with some areas costing more than others
  • New or used: New engines often cost more than used engines but may last longer
  • Warranty: The longer the warranty on the engine, the more it may cost

FAQ

Is it Possible to Finance an Engine?

There are several ways to finance an engine. Some car repair shops may offer their own financing options, or you can consider a title loan, credit card, personal loan, or borrowing money from family or friends.

What Happens if My Engine Blows and I Still Owe Money?

No matter the type of loan you choose, the financing company will always require you to repay the loan in full, even if the engine blows. It’s a risk you take when choosing engine financing, but it’s often a much lower cost than buying a new car.

Does Insurance Pay if Your Engine Blows Up?

Insurance companies don’t typically cover the cost of an engine blowing up. The only exception is if the occurrence can be tied to a covered accident or incident, but that’s rare.

Final Thoughts

Not knowing how you’ll pay the engine repair costs can be scary because you need a car to drive. Fortunately, many car repair loan options exist, including car title loans. These emergency car loans offer same-day or next-business-day funding and let you keep your car while using it as collateral.

If you’re experiencing a financial emergency with your car, use our fast application process to determine your eligibility. There is no obligation to receive a free quote to compare your options.

Written by Samantha Hawrylack

Written by

Samantha Hawrylack

Samantha Hawrylack writes for our company and is an expert in personal finance. Sam received her Bachelors of Science in Finance and her Masters in Business Administration from West Chester University of Pennsylvania. She began her career in the financial services industry and shifted to an entrepreneurial role where she could directly impact clients. Sam has an impressive background in personal finance and business management.