Hi - my 2001 Camry main bearing has failed. My mechanic is suggesting that I get a rebuilt/new engine. What are relative costs ? It has 120K miles with a decent body. Wondering if I should salvage it or move on.

 

4 cylinder or V6?

There are a lot variables here. Suggest you first start by obtaining cost estimates.

A used engine may cost $650-1000 from a salvage yard, a rebuilt $1500 and up. A new engine from Toyota is guessing at least $4-5K. Call a few auto salvage yards, your mechanic may know some re-builders (they rebuild engines in mass and sell them to dealer, etc) and get a few quotes on rebuilt engines.

You might also look into getting a short block, this is the bottom end of the engine having the crank. The head(s) and other parts would be swapped.

If going this route try to get some kind of warranty on the engine. Have the mechanic obtain the engine so they will be in part responsible for its condition and any follow up problems should they occur.

One major cost in engine replacement is labor. Ask your mechanic for a labor estimate to remove the old engine and install a replacement. Also ask for the labor costs for the mechanic to install a short block.

The short block way will require more labor as parts need to swapped but the overall cost may be lower if the price of a short block is lower.

Do you want to keep this car and if so how long?

Find out what a replacement car would cost and what the market value of this car is with the bad engine. Typically its value would be a good deal less the costs to install a replacement engine. There is no shortage of Camry's in good condition. A buyer would most likely want a bargain and most likely do the work themselves saving labor costs.

They might even try to rebuild the bad engine, something that is cost prohibitive if paying a mechanic to do the job.

As such the value of the car with a bad engine is not going to be that much.

However if you repair this car its value is most likely not going to be much more then it would with the old engine in good running condition.

Add all the costs up.

Consider if you are going to keep the car for another 10 years. If so the cost per mile of the replacement engine may be very reasonable. The replacement costs being spread out over say 100K miles.

If you were going to sell the car any way, suggest you don't repair but put the money toward the other car. It seldom pays to put this much money into a car that is going to be sold unless it is rare, a collectors car, etc.

 

Thank Joey for the extended reply. I think given your advice I will skip repairing the car. The mechanic is willing to purchase the car - how much should I sell it for ? $500.

 

Check local Craigslist ads to get a ball park price and Kelly Blue Book value from private sell.

Used 2001 Toyota Camry - Select Blue Book Value - Kelley Blue Book

Camry prices will vary with state and city (demand).

Also check Craigslist for total cars, often being parted out.

Does the cars condition reflect 120K miles (meaning in very good condition)?

Did you ever get any cost estimates from the mechanic?

Suppose the car is worth at least $5K in running condition (you need to check this price). If you sell the car for $500 this means the person who buys the car can put in $4500 and still break even. The mechanic or whoever else buys the car most likely will be doing their own work.

This is a long way around stating I think $500 is too low. The mechanic or whomever buys the car will of course expect some compensation for their time.

If I had a 2001, for $500 I would by the car just for parts.