Replacing a worn or broken engine on a customer's vehicle can be a very sensitive subject for many independent shop owners because it's a time-intensive and possibly high-liability service. After a replacement is done, a shop's greatest fear is that a minor ticking noise or oil leak may ruin the profitability of the engine replacement. Nevertheless, engine replacements can be profitable, providing that the service is priced at a profitable level and that the correct precautions are taken to prevent expensive comebacks.

Power Options
An independent repair shop has a handful of engine replacement options available: a used engine, a quality rebuilt, a remanufactured or new OE engine.

When choosing between the used, rebuilt, remanufactured and OE-"crate" engine options, always remember that a used engine might, for example, routinely require an expensive timing chain and guide replacement. However, due to the inherent reliability of some import engines, many nameplate shops feel safe in choosing a used engine as a replacement option.

Remanufactured engines are a mixed bag, largely dependent upon core availability, the quality of the OE castings and the quality controls associated with the remanufacturing process itself. As for new "crate" engines, the expense usually eliminates this option for some customers. In some cases, however, the new engine may perhaps be the safest, most reliable option.

One of the ...