How much does an engine replacement cost in Australia?

A petrol engine replacement typically costs $5,600 to $6,700 all in — around $4,499 or more for a brand-new crate engine, $840 to $1,400 workshop labour (roughly $140 per hour over 6 to 10 hours), and $300 to $800 in parts and fluids. A diesel replacement typically runs $9,300 to $10,200, with engines from $5,850, around $2,240 labour (roughly $160 per hour over 14 hours) and about $1,200 in parts. Labour and parts costs are charged by your workshop and vary by location.

Why does a diesel engine replacement cost more than petrol?

Diesel engines cost more to purchase and take considerably longer to install — typically around 14 hours, made up of roughly 4 hours preparation and 10 hours installation. There is more to strip and transfer, and timing gear that must be replaced correctly while access is available.

Is it cheaper to rebuild or replace an engine?

A rebuild often costs a similar amount to a new crate engine once machining and labour are counted, but leaves you with your original high-kilometre block. A brand-new crate engine has no prior wear, includes a warranty, and is hot tested before dispatch.

Does engine replacement cost include shipping?

Crate Engines Australia includes free shipping Australia-wide with free postage insurance on every engine, plus a 1 year warranty and no exchange motor required. Workshop labour and parts are charged separately by your mechanic.

Buyer's Guide

Engine Replacement Cost

Replacing an engine is one of the biggest bills a vehicle owner faces — and almost nobody publishes what it actually costs. Here's the full breakdown: the engine, the labour, and the parts nobody mentions until the invoice arrives.

Petrol — All In

$5,600 – $6,700

Engine + labour + parts, fitted

Diesel — All In

$9,300 – $10,200

Engine + labour + parts, fitted

How to read these numbersEngine prices are ours and current. Labour and parts figures are typical Australian workshop rates — we don't perform installations, so those costs go to your mechanic, not to us. Rates vary by workshop, state and vehicle. Always get a written quote before committing.

The Breakdown

What You're Actually Paying For

An engine replacement is three separate costs, and most quotes only show you one of them. Here's all three.

Cost	Petrol	Diesel	Who Charges It
The engine	From $4,499	From $5,850	Us — brand new, warranted
Workshop labour	$840 – $1,400 ~$140/hr × 6–10 hrs	~$2,240 ~$160/hr × 14 hrs	Your mechanic
Parts & fluids	$300 – $800	~$1,200 timing gear, belts, seals	Your mechanic
Shipping	Free — Included	Free — Included	Us — AU-wide, insured
Warranty	1 Year Included	1 Year Included	Us — extendable at checkout
Typical Total, Fitted	$5,600 – $6,700	$9,300 – $10,200

Where Your Money GoesTypical diesel replacement — $9,300 total

Engine 63%

Labour 24%

Parts 13%

Engine — paid to us, brand new & warranted Labour — paid to your mechanic Parts & fluids — paid to your mechanic

Why diesel costs more

Diesel engines cost more to buy and considerably more to fit. A typical diesel install runs around 14 hours — roughly 4 hours prep and 10 hours installation — because there's more to strip, more to transfer across, and timing gear that has to be done properly while access is available. Rushing that work is how a new engine gets damaged in its first month.

4 hrsPrep

10 hrsInstallation

Typical diesel workshop time — 14 hours total

Work It Out

Estimate Your Total

Cost Estimator

Pick your engine type to see a typical all-in figure. These are estimates to help you budget — your workshop quote is the real number.

Crate engine Brand new, from our range$4,499+

Workshop labour ~$140/hr × 6–10 hours$840 – $1,400

Parts & fluids Oil, coolant, seals, mounts, belts$300 – $800

Shipping Australia-wide, insuredFREE

Warranty 1 year standardINCLUDED

Estimated Total$5,600 – $6,700

Variables

What Moves the Price Up or Down

Pushes Cost Up

Diesel engines — more expensive to buy, longer to fit, more timing gear
4WDs and vans — tighter engine bays and more to disconnect
Turbocharged engines — extra plumbing, and the turbo should be checked
Worn ancillaries — a tired alternator or starter has to be replaced, not transferred
Collateral damage — an overheat that also killed the radiator or water pump
Metro workshop rates — city labour rates run higher than regional

Keeps Cost Down

Petrol 4-cylinder — cheapest engines and the quickest installs
Free shipping — no freight bill on top, anywhere in Australia
No exchange required — no core charge, no deposit held, no return freight
Delivery to your workshop — saves you moving 250 kg twice
Doing wear items now — clutch and seals cost a fraction while the engine's out
Quoting more than one workshop — labour rates vary widely for identical work

The Decision

New Engine vs Rebuild vs Second-Hand

Three ways out of a dead engine. The cheapest option upfront is rarely the cheapest over three years.

Brand-New Crate

$4,499+

A new engine with zero prior wear, hot tested before dispatch and covered by warranty.

No prior wear or unknown history
1 year warranty, extendable to 3
Hot tested, QR video proof
Free insured shipping, no core
Paid once, fitted once

Rebuild Your Old One

Varies widely

Your existing engine stripped, machined and reassembled with new wear parts.

You still keep the old block
Cost unknown until it's stripped
Vehicle off the road for weeks
Warranty depends on the builder
Keeps matching-numbers engine

Second-Hand / Wrecker

Lowest upfront

A used engine pulled from another vehicle, with whatever history came with it.

Cheapest sticker price
Unknown kilometres and history
Little or no warranty
Rarely tested before sale
Fail early and you pay labour twice

New crate engine

Engine

Labour ×1

Paid once

Cheap engine that fails

Engine

Labour ×1

Engine again

Labour ×2

Paid twice

The maths people miss

Labour is the same whichever engine goes in. If a cheap second-hand engine fails after eight months, you pay that $840–$2,240 labour bill a second time — which usually wipes out everything you saved on the engine. That's the real reason a new engine works out cheaper for most people, not sales talk.

Real Prices

What Our Engines Actually Cost

No "call for pricing" games — here's what popular engines sell for right now, all brand new with free shipping and warranty included.

Petrol

Every price includes

Free shipping Australia-wide · Free postage insurance · 1 year warranty · No exchange motor required · Hot tested before dispatch · GST included with tax invoice.

The Honest Answer

Is It Worth Replacing the Engine?

Sometimes it isn't, and we'd rather tell you that than sell you an engine you don't need.

The rough test: compare the all-in replacement cost against what your vehicle is worth with a healthy engine, and against what replacing the whole vehicle would cost. A Hilux or Prado with a good body, recent tyres and a solid gearbox is usually worth re-engining — those vehicles hold value and often run another 200,000 km. A cheap runabout with rust, a slipping transmission and a $4,000 book value usually isn't.

Also worth weighing: replacing the engine on a vehicle you know beats buying someone else's unknown problem. You already know its service history, its accident history, and what it's been through.

Before you spend anything

Get a proper diagnosis first. Not every knock or smoke cloud means a new engine — some faults are far cheaper repairs. Our Learn the Lingo glossary explains what your mechanic is describing, and How It Works walks through the whole replacement process.

Get a Real Number