Understanding the Impact of a Blown Engine

Yes, you technically can trade in a car with a blown engine—but it’s rarely a good deal. While some dealerships will accept cars in poor condition, others won’t even consider a trade unless the car can be resold or rebuilt profitably. If your car has suffered a catastrophic engine failure, the trade-in value will be significantly reduced.

A blown engine doesn’t mean the engine exploded, but it does mean serious mechanical damage has occurred. There are a few common reasons why engines fail:

  • Valve punching through a piston
  • Broken connecting rod
  • Complete oil depletion
  • Coolant loss and overheating

Each of these issues can render a vehicle undrivable and extremely expensive to fix. For example, replacing a blown engine could cost anywhere from $3,000 to $7,000—or more—depending on the make, model, and engine type.

Common Symptoms of Engine Failure

Knowing whether your car has a blown engine or other serious mechanical issues is important before considering a trade-in. Look for these red flags:

  • Blue or white smoke coming from the exhaust
  • Knocking noises from the engine block
  • The engine turns over but won’t start
  • Severe loss of oil or coolant
  • Check engine light accompanied by performance issues

These indicators usually suggest internal engine damage, which immediately reduces your car’s resale value. If you're asking "how much is my car worth with a blown engine," the answer will depend on the extent of these issues.

Can I Trade In a Car With the Check Engine Light On?

Technically, yes—but don’t expect much. Dealerships are in the business of reselling vehicles quickly, and a check engine light sends a strong message that something is wrong. If the car has major issues, you might be offered only a few hundred dollars—if anything at all.

Larger national chains like CarMax may accept non-running vehicles, but they usually offer trade-in value far below market price. Local or independent dealers are often unwilling to accept non-functional cars unless you’re buying a much newer vehicle from them.

Even if a dealer accepts the trade, they’ll likely adjust your purchase terms by reducing your trade-in credit or raising the sale price of your next car. This is especially common when attempting to trade in a car with engine problems.

What Is the Trade-In Value of a Car With a Blown Engine?

The trade-in value of a car with a blown engine is based primarily on its salvage value. This means you’ll be offered far less than the Kelley Blue Book value. Typically, you can expect offers to fall in the 10%–30% range of the car’s pre-damage market value.

Dealers often deduct the estimated cost of engine replacement or repairs from your car’s value. Since replacing an engine is a major expense, they tend to offer less money to cover that risk.

For example:

  • A car worth $8,000 in running condition might only fetch $1,000–$2,000 with a blown engine
  • If the cost to replace the engine is $5,000, the value is further reduced to account for repair and resale overhead

Why Most Dealerships Avoid Blown Engines

Unless you’re trading in a high-demand car that’s otherwise in excellent condition, most dealerships see a blown engine as a liability. Cars with major mechanical issues don’t move quickly off the lot and may require thousands in investment just to get running.

Additionally, dealers are wary of liability and customer complaints if repairs don’t go as planned. The average dealer prefers to auction off damaged cars rather than handle the risk and expense themselves. That’s why many people prefer to sell cars with blown engines to specialized buyers instead.

Better Alternative: Sell to a Damaged Car Buyer

Instead of fighting for a few hundred dollars on a trade-in, you can sell your non-running or engine-blown car to a specialized buyer like DamagedCars.com.

We make it easy: Learn more about selling a car with a blown engine.

  1. Request a quote online in under 90 seconds
  2. Accept your offer with no pressure or hidden fees
  3. Schedule free pickup within 24–48 hours
  4. Get paid on the spot—no towing costs, no haggling

Unlike traditional dealerships, companies like DamagedCars specialize in evaluating vehicles based on part value, metal weight, and auction resale potential. That means even a car with a blown engine still holds value in their eyes—far more than what you’ll get trading it in.

We buy a wide range of vehicles including:

  • Sedans, SUVs, trucks, and vans
  • Cars with engine, transmission, or electrical damage
  • Non-running vehicles or cars with salvage/rebuilt titles

We even help complete the paperwork and remove any stress from the selling process. Whether you're looking to get cash for a car with a blown motor or sell a car without repairing the engine, we can help.

What About Selling a Car With Engine Issues Online?

While it’s possible to list your car on platforms like Craigslist or Facebook Marketplace, finding a buyer willing to deal with a blown engine is challenging. You’ll likely encounter:

  • Lowball offers
  • Time-consuming messages and meetups
  • Safety risks from in-person transactions
  • Buyers backing out last minute

In some cases, buyers may show up only to renegotiate your listed price dramatically once they see the condition in person. You might spend days responding to messages only to walk away with nothing.

You could try selling it to a junkyard, but you may only receive scrap metal value and will have to arrange your own towing. A better option is to get an instant offer from a trusted damaged car buyer like DamagedCars.com. If you’re unfamiliar with vehicle salvage regulations, it can also be difficult to ensure you’re getting a fair price. Sites like ours make it easy to understand the value of your car with a bad engine and get cash without the stress.

Conclusion: Know Your Options and Choose Wisely

You can trade in a car with a blown engine—but that doesn’t mean you should. Most traditional dealers will give you little to nothing, and any trade-in value you do get is likely to be offset by higher vehicle costs elsewhere.

Instead, consider selling your non-running vehicle to DamagedCars.com. We’ll give you a fair offer, free pickup, and fast payment—no hassles, no pressure, and no surprise deductions. It’s the smarter, faster way to get cash for your car when the engine’s gone south.

With DamagedCars, what seems like a lost cause can quickly turn into a win.

About Author
Rudy Rodriguez
Automotive Expert

Rudy brings 9 years of industry expertise to the table. From decoding salvage market nuances to steering CarBrain's insights.

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Frequently Asked Questions

Should I Repair My Car Before Trading It In?

If you’re thinking about trading in a car with a bad engine, it generally doesn’t make sense to try and fix it first. The cost of repairs for an engine with problems is typically much higher than it’s worth. This is especially true if your vehicle is older or damaged otherwise.

Instead, you can trade in a car with engine problems as-is. Of course, dealerships aren’t generally the best place to try to get payment for a damaged car, since they specialize in vehicles they can sell, not vehicles that need work.

Instead, a service like DamagedCars might be right for you. DamagedCars will make an offer on your car with a damaged engine, bad transmission and more. We even include free towing and title transfer with all of our quotes.

What To Do With A Car That Is Not Worth Fixing?

If you have a car not worth fixing, your best option is to sell it to someone who specializes in vehicles with blown engines, bad transmissions and other mechanical problems. For instance, DamagedCars purchases vehicles with mechanical defects every day.

Get an offer for your vehicle through DamagedCars in just 90 seconds. We work with reliable partners in your area to help you get the best offer, free pickup and on-the-spot payment in just 24-48 hours after you accept our offer.

How Do I Sell My Car With An Engine Problem?

You can trade in a car with a blown head gasket, seized engine and other mechanical problems through a dealership, sell it to a junk car buyer in your area or choose the easy route and find an online car buyer like DamagedCars.

All you need to do is describe your vehicle and get an offer. We can help you schedule your free towing in 24-48 hours, pick up your car and pay you on the spot!

How Much Can I Sell My Car With A Bad Engine For?

The trade in value of a car with a bad engine will depend on a couple of factors, including its year, make and model, what condition it’s in otherwise, your location and more. You might get anywhere from $200 to several thousand dollars for your vehicle.

The best way to find out how much you can sell your car with a blown engine for is to get an offer from DamagedCars. It takes just 90 seconds, includes free towing and title transfer, and relies on nationwide data to figure out what your car is really worth, so you won’t be lowballed.

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