Engine Replacement Comparative Costs

[Brucelee]

http://www.everdrive.com/skus/AA/5001663-1999-PORSCHE-BOXSTER-Engine.htm

Quite by accident, I found the site above, which lists a used Box engine with 3 yr warrranty for $6400 shipping included.

What was equally interesting to me was that the same site lists an engine for a Lexus 4.0 V* at $1200.

Now I have never heard of a Lexus V8 pooping out but the difference above just seems mind blowing to me.

Imagine if you could buy an engine for your Box for $1200. Would make that 1998 Boxster selling down the street for $8500 look pretty good, no?



PS-These guys sell Nissan 300ZX engines for about $1600.

[ekam]

That's obviously a picture of a boxster engine!

[idheaton]

Wow...a 3 year unlimited mileage warranty on a used Boxster engine... they are brave.

[Jaxonalden]

Quote;

"Quite by accident, I found the site above, which lists a used Box engine with 3 yr warranty for $6400 shipping included.

What was equally interesting to me was that the same site lists an engine for a Lexus 4.0 V* at $1200."

Those costs seem comparative if you look at it from a demand point of view. Boxster engines *POP* 99% more often than a Lexus/Toyota power plant so it would only make sense to ask more for a product that moves. I've owned Toyota's (93 pick-up, T-100, Camry, Tundra, Sequoia) and a Lexus (ES300) and have never had or heard of a power plant problem, period.

I'm saving that site in my favorites.

[roadracer311]

I think salvage yards base their prices on a formula of roughly 50% of retail. It would also make sense though, that there wouldn't be much demand for used lexis motors.

[johnsimion]

Is somebody who is obviously more clever than I am who can make and sell a kit to allow a retrofit of some other engine into the Boxster if and when the existing engine fails. Don't misunderstand me, I'm quite happy with the car and the engine as is -- but I suspect my love affair will rapidly diminish if I get stuck with an engine replacement that costs twice as much as the car itself. I appreciate what Jake Raby is doing, but don't look forward to paying $18K for a new engine just to keep my car running. In that situation, if I could get a $1200 engine shoehorned in there, the cost savings would pay for a lot of labor in retrofitting it. I'm praying the IMS holds up . . .

[NoGaBiker]

Originally Posted by Jaxonalden

Those costs seem comparative if you look at it from a demand point of view. Boxster engines *POP* 99% more often than a Lexus/Toyota power plant so it would only make sense to ask more for a product that moves.

Two Points:
1) Actually, in things like replacement parts for cars that are no longer made, fast-selling large-volume parts are always cheaper than slow-moving, low-volume parts. ie, price a top for an MGB vs. a similar top for an Alfa Giulietta

2) While cost-to-build has some component in pricing cars and car parts, it really only establishes a minimum price. For instance, if Porsche's cost plus 20 percent markup on an M96 was $4,000, then that would be the minimum they would sell it for, because otherwise they would lose money. But there is NO limit on the upper end, is there? That's called "what the market will bear." And because Porsche is not very motivated to sell replacement engines, they are not interested in that market. So they charge a bunch. So that you will buy a NEW car. Which is what they sell. Isn't it interesting that nobody can rebuild an M96 for less than Porsche will sell you a replacement for? They know that. If rebuilds are going for more than 12k, why would they sell motors for less than that, even if they could build them for $300? They might do it for "customer good will", or if they were trying to gain a foothold in the market, or some intangible like that. All valid reasons. But Porsche enjoys a position of great customer good will and retention, and they are among the most profitable companies in the world in any field, and THE most profitable in automobiles.

I'm not "justifying" any of this or saying it's right or good or whatever. But it's a fact of life. Ya gots to pay to play. Simple as that.

Matt

[986FortyEight]

Oh so true. Very good point of view on the reality of the market.
+1