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Old 04-09-2009, 08:29 AM
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Resale value and odds?

Hey everyone. Before I consider rebuilding an engine and putting some cold hard cash into it, I just want an idea of what a rebuilt engine goes for and the difficulty of selling them. I understand the need to keep all the receipts, but even so, I'm wondering what kind of profit could you make? Can you even break a profit? From your experiences, what are the best ways to avoid the "exotic" beast that no one wants? What qualities are people looking for? Will profit increase as more money is invested in the engine? As in, will making a powerful engine yeild more revenue? What are your experiences? Or is it just that everyone builds engines here, so no one wants to buy a rebuilt?

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Old 04-09-2009, 08:41 AM
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With the flood of cheap engines out there, making money isn't going to happen unless you find a sucker. Machine shops put $800 of labor and parts into an engine (since they get stuff at cost) and sell it for $2000. You would spend $2000 duplicating it (because you pay retail) and then have to try and sell it for more.

Its like buying cheeseburgers from McDonalds and selling them for a profit. Not gonna happen when people can buy trusted burgers across the street at the actual store.
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Old 04-09-2009, 08:44 AM
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You won't turn a profit except for extremely rare engines. Get over that idea. Classifieds are full of engines that someone spent $3000 on and will only sell for maybe half that.

How much you lose on the sale is completely dependent on the engine, the market, the components, and how good of a salesman you are. Engines that have stock bore sizes are more desirable than overbored (IMO).
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Old 04-09-2009, 09:28 AM
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Five major engine rebuilders have gone under here in the past three years. Does that give a clue as to how to make a buck in that business?

Second, every would-be buyer is an expert and has his own opinion of how it should have been done. "Well, I'd really have bought yer motor thar, 'cept I'd have used forged pistons, a stroker crank and a bigger street roller cam and those trick new AFX heads." No matter how mainstream the effort, they always wanted it bigger, better and cheaper.

thnx, jack vines
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Old 04-10-2009, 02:14 AM
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Ok, thanks guys. Puts things into perspective. Now I know what route I want to take with the rebuild.
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