Unlike replacing a tyre or servicing the brakes, installing a new engine is one of the most expensive repairs a vehicle owner can face.
In Australia, the total cost of replacing an engine can range from a few thousand dollars to tens of thousands, depending on the type of vehicle, engine size, and whether you choose a new or second‑hand unit.
This guide explains what causes engine failure, summarises up‑to‑date cost estimates and factors that influence them, and helps you decide whether replacing the engine or selling the car to Metro Car Removal makes more financial sense.
Engine Replacement Cost In Australia
Cost range by vehicle type
We’ve summarised below the estimated engine replacement costs, our figures include both parts and labour, with labour calculated at about $120-$150AUD per hour.
Actual prices depend on the specific engine, model year, workshop and location.
| Vehicle type (example) | Replacement engine cost (new) | Second‑hand/remanufactured engine | Estimated labour (5–12 hr) |
| Small petrol hatch (e.g. Mazda 2) | $2,500-$6,500 | $2,000-$4,000 | $600-$1,800 |
| Mid‑size sedan (e.g. Toyota Camry) | $4,500-$7,500 | $3,500-$5,500 | $1000-$2,000 |
| Ute/4WD (e.g. Toyota Hilux) | $6,000-$10,000 | $4,500-$7,000 | $1000-$2,500 |
| European luxury car (e.g. BMW) | $8,000-$20,000+ | $6,000-$18,000 | $1,750-$3,000+ |
| Hybrid/EV | $12,000-$25,000+ | Often not viable (few second‑hand units) | High as specialist shops required |
The high labour hours and complexity of modern engines make these figures typical, not worst‑case.
Engine Replacement Cost By Engine Type
Other sources provide average ranges based on the type of engine fitted to the vehicle:
- Gasoline engines: $3,500-$6,500 including parts and labour. High‑performance or luxury petrol engines cost more due to specialised parts.
- Diesel engines: $5,000-$12,500. Diesels are more expensive because of their higher compression and the specialised expertise required.
- Hybrid engines: The Public AU guide suggests $1,500-$4,500, although other experts note that hybrid/EV engine replacements often cost $12,000-$25,000+ due to battery and electronics, so expect significant variation.
- General major repair estimates: Canstar’s car‑insurance guide lists engine replacement among the most expensive repairs, with costs ranging $3,000-$11,000.
Low‑Budget And Rebuilt Options
You can sometimes reduce the engine repair bill by fitting a rebuilt or used engine from a wrecker.
A finance guide quoting Airtasker reports that replacing an engine could cost $1,000-$4,000, depending on whether you pick up a used engine from a scrapyard or a reconditioned unit.
A rebuilt engine typically costs around $4,000, while a brand‑new replacement could exceed $10,000.
An engine rebuild can cost $400-$4,500, and a replacement averages $1,000-$4,000, but these figures apply mainly to smaller engines.
Labour Time And Hourly Rates
Engine replacement is labour‑intensive, generally the job takes between 10-12 labour hours and typically spans two business days. At labour rates of $120–$150 per hour, that translates to $1,200-$1,800 just for labour on a small hatchback.
Larger vehicles with complex electronics can push labour costs above $3,000.
Signs Your Engine Is Failing
Engine failure rarely happens without warning. Common symptoms include:
- Check‑engine light or warning icons: When the amber engine symbol illuminates, it indicates sensors have detected a fault such as misfires or abnormal temperatures.
- Smoke from the exhaust: Blue smoke points to burning oil and internal wear, white smoke suggests coolant is burning and may indicate a cracked cylinder head, and black smoke often means the engine is running too rich.
- Knocking or grinding noises: Worn bearings, a broken timing belt or other internal damage can create loud knocking sounds.
- Overheating: Persistent overheating can mean a cracked block or failing water pump.
- Loss of power or stalling: Difficulty accelerating or frequent stalls indicate the engine may be at the end of its life.
- Metal shavings in the oil: When you drain the oil and find metal particles, internal components are likely wearing out
If you notice any of these signs, book a diagnostic test quickly. Early intervention can prevent minor problems escalating into a complete engine failure.
What Affects Engine Replacement Costs?
Several variables influence how much you’ll pay:
- Vehicle make and model
- Engine type and technology
- New vs. second‑hand vs. rebuilt
- Labour time and expertise
- Additional repairs
- Availability of parts
Should You Repair, Replace Or Sell Your Car?
When faced with a failing engine, you have four main options:
- New engine: Best for newer or high‑value cars under warranty. A new engine offers reliability but is the most expensive option and can take weeks to import.
- Remanufactured or second‑hand engine: Provides a compromise between cost and reliability. You can check wreckers and see if they have parts, these cost substantially less than new units. Always purchase from a reputable mechanic and check compatibility.
- Engine swap from a wrecker: The cheapest alternative, suitable for older vehicles you plan to keep for only a short time. However, compatibility issues may arise and warranties may be void.
- Rebuilding the existing engine: A rebuild can address worn bearings or piston rings and costs between $400- $4,500. It’s worthwhile when the engine block is healthy but internal components need refreshing.
- After getting quotes, compare the repair cost to the market value of your car. Finance guides recommend obtaining three quotes and researching the vehicle’s resale value; if the replacement cost is higher than the car’s worth, consider replacing the car and getting rid of your old car with a car removal service.
When Car Removal Makes More Sense
If the engine replacement costs exceed the value of your car or the vehicle is already suffering multiple mechanical failures, selling can be the smartest move.
Metro Car Removal provides a hassle‑free way to turn a broken‑down car into cash. Instead of paying thousands for a new engine, you can arrange a free pickup, avoid advertising and negotiation fees, and receive an instant cash payment based on the scrap value and remaining usable parts.
This option is particularly attractive for old vehicles with rust, high mileage or accident damage where even a used engine would not restore significant value.
For many older cars, selling the vehicle to Metro Car Removal in Sydney and receiving instant cash may provide a better financial outcome.
Whatever you decide, maintain your engine diligently to prolong its life and avoid hefty replacement costs in the future.
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