How to sell a car with a bad engine

Tips to Sell a Car With a Bad Engine Or Transmission

Selling a car with a bad engine or transmission to make the most money can be difficult, but not impossible. However, your first consideration is whether you live in a state that requires a current smog check before selling a vehicle. If you do, then you’ll have to follow different rules and in most cases that means you’ll have to sell it as scrap. I’ll leave it up to you to research that topic.

What is a car with a bad engine or transmission worth?

Let’s assume you’re thinking of selling it because the cost of a new engine or transmission will cost more than the car or truck is worth. If it’s not worth it to you to put more into it than the vehicle is worth, then who else might want it? Well, a mechanic might. So might a competent DIYer, because they can do the labor for free.

So let’s approach it from that angle; you want to sell your car to someone who is looking for a decent vehicle that needs work they can do themselves. What’s it worth?

Start by figuring out what the private party selling price would be if it had a working engine or transmission. Use kbb.com, edmunds.com, or nada.com. Answer all the questions regarding year, make, model, engine, trim package, and any extra features, Then answer the questions about condition and assume a working engine/transmission.  That’ll give you a range of values for what they assess your vehicle to be worth.

Next, check the selling prices for all comparable vehicles in your area.

Next, start deducting for repairs and risk

Let’s assume comparable vehicles are selling for $9,500 in good operating condition. You got an $8,500 quote for a new engine, so you’ll have to deduct that from the $9,500 everyone else is asking ($9,500 – $8,500 = $500). But wait, would you buy a vehicle you couldn’t test drive? Right. Neither would anybody else. So you have to discount even more to cover the buyer’s risk of not being able to test drive it. How much? It’s usually about 30% of the remaining price, leaving you with $350, which is just about its junk value from a scrap hauler. Here’s how to get more.

Finding the right buyer

The potential buyers are mechanics and DIYers. So promote it to them using THEIR logic. Think about it from their perspective. If your car has normal miles, a good body, and decent tires, a mechanic or DIYer could probably justify paying you around $1,000-$1,500 for the vehicle. They could pick up a used engine, install it, and have transportation for themself or their kids for a bargain price.

• Take pictures of the vehicle with a clean exterior and interior and go to local repair shops. Ask the owner if you can talk to the mechanics and see if anybody is interested. Ask if you can post a flyer in their employee break room.

• Post for sale notices in local coffee shops

• Post ads on Facebook marketplace and Craigslist, saying it’s a “mechanic’s special” or DIYer bargain.

Negotiate the price

Any decent car should start at around $1,200. You know it’s worth $350-$400 in scrap value (including the value of the catalytic converter), so you shouldn’t even consider any offer near that price. In this particular scenario, you’ll probably settle on a price in the $900 range. That’s double the scrap value.

©, 2024 Rick Muscoplat