CARFAX says "engine replaced" - Does this increase or decrease value?

I’m conisdering purchasing a used car (2000 Saab 9-5 SE wagon) from a local dealer with a great reputation and an excellent service department, where I have had my cars serviced for years. The CARFAX report reveals one prior owner who appears to have purchased a service contract on the eve of expiration of the manfacturer’s 50k warranty. Good thing, too, because under that contract at 60k miles the fuel sys. was repaired, at 80k the cooling system was replaced, and at 85k the engine was replaced. A little over one year and about 10k miles later, the car was purchased at an auction by the dealer who has it now. So I have a few questions: 1) Do you think the engine was replaced with a brand new one or a used or rebuilt one? 2) Does the replaced engine reduce the car’s resale value? Seems that a new engine properly installed at 85k would make the car last that much longer…but I can imagine potential buyers having the same unease I have now, wondering if the car is a lemon with more major problems to come. But with the engine and cooling system replaced, what else major could go wrong? 3) I am also thinking that for the service contract to have been honored three times from 60k through 85k, the owner must have been keeping up with and documenting the maintenance, otherwise the service contract would not have covered those big-ticket items, right? Good idea or bad idea to think about buying this car?

  1. Do you think the engine was replaced with a brand new one or a used or rebuilt one?

Your guess is as good as mine.

  1. Does the replaced engine reduce the car’s resale value? Seems that a new engine properly installed at 85k would make the car last that much longer…but I can imagine potential buyers having the same unease I have now, wondering if the car is a lemon with more major problems to come. But with the engine and cooling system replaced, what else major could go wrong?

Personally, I would stay away from it. Who would want a car that needed a replacement engine after only 85,000 miles?

  1. I am also thinking that for the service contract to have been honored three times from 60k through 85k, the owner must have been keeping up with and documenting the maintenance, otherwise the service contract would not have covered those big-ticket items, right?

Not necessarily. That is a HUGE assumption. You don’t know if the car was brought in for service or simply because something went wrong. Also, since the service contract was probably from a private company, rather than the factory, there may have been no incentive to deny a claim because of a lack of maintenance. Besides, the repairs may not have been related in any way to maintenance.

Good idea or bad idea to think about buying this car?

I would want something much more reliable myself.

Personally, I would avoid this car. The fuel system thing may not be a big deal but the “replacing the cooling system” followed by an engine replacement 5k miles later points to an abusive car owner IMHO.

SAAB builds great engines and when one fails it’s on the car owner almost all of the time. If they abused the engine then one could also figure the transmission and/or clutch could also be shaky, along with brakes and suspension depending on how hard it’s been driven.

(And I consider continuing to operate an overheating vehicle as abuse)

As to new or used engine, no idea. That’s something you would have to try and research. I’d still pass on a 8 year old car with a shaky history unless the price was very, very right. And none of the KBB value garbage either.

Buy cars that have been auctioned, but buy them cheaply. You can have a happier life without a Saab wagon. Few people want such cars. Now for a definition, a day later: With that year Saab, there’s not much in the way of a repair that will cause any change in the value.

R U N AWAY… TAKE FLIGHT…

i am really impressed that the CarFax includes so much detail.

I would presume that the original engine was damaged when the cooling system failed, and it became apparent within 5k miles that the problems were severe enough to cause them to discard the engine. I would further presume, that they probably put a junk yard engine in the car.

Impact on value? I would say neutral. However, the colorful history of this car gives me pause.

The engines if V6(GM sourced) in this vintage Saab were known to sludge up. So replacement is not out of the oridinary. If I were looking I would avoid the V6 and get the decent reliable 4 cylinders with turbo. They are far more fuel efficient.

My brother has a 2001 Saab 95 Aero and loves it. He has some minor issues but a independent shop takes care of the issues at a reasonable rate.