How To Finance Engine Overhaul Costs

Why replace your engine — or an entire piece of equipment — when you can overhaul the one you have? Every Cat® engine and generator set is built to last, and an overhaul can significantly extend its life. You save time and money compared to buying new. And financing options make it easy to fit the engine overhaul cost into your budget.

Estimated read time: 4 minutes

Cat Financial

Published: Nov 10, 2022

Engine troubles? An overhaul can return your equipment to good working order. And Cat Financial can help you spread out the engine overhaul cost over time.

ENGINE OVERHAUL FINANCING AND PROTECTION OPTIONS

Your Cat^® engine or generator set is the heart of your equipment. You count on it to run reliably every day, so you can keep your business running strong.

But like your own heart, an engine works hard every day and eventually wears down. When that happens, you don’t have to replace your engine or scrap your equipment. An overhaul can extend engine life and keep your equipment working.

Even though it’s less expensive than replacement, engine overhaul cost can still be significant. Maybe you don’t have the cash to pay for it up front. Or maybe you’d rather use that money for something else. Engine overhaul financing makes it easier to fit the expense into your budget.

Pay for an overhaul with the Cat Card. This revolving line of credit lets you carry a balance from month to month as you pay down the engine overhaul cost. You also get access to special offers. And if you qualify, you can earn rewards* to redeem for parts, services, rentals, attachments and more.
Add extended protection. You can protect your investment in an overhauled engine or generator set with Extended Service Coverage (ESC). It helps you avoid unexpected expenses by locking in parts and labor repair costs and covers dealer workmanship. You can choose from multiple coverage levels and deductibles to fit your budget.

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TOP FINANCIAL REASONS TO OVERHAUL YOUR ENGINE

Cat engines and generator sets are built for multiple lives. If you scrap yours when it starts having issues, you leave value on the table. An engine overhaul is a much more cost-effective option than buying new. It also:

Significantly extends the life of your equipment
Helps restore performance and improve fuel efficiency and power
Reduces your risk of downtime due to engine failure
Lets you keep using equipment you’re familiar with
Offers a great alternative to buying new if inventory is limited

There are sustainability benefits to an overhaul, too. Cat dealers recondition and reuse as many parts as possible — replacing only what’s required. When parts can’t be salvaged, they’re replaced with Cat Reman components when feasible. That doesn’t just save you money. It also saves the material, energy and water required to manufacture new parts.

Engine overhaul cost and timeframe

It’s tough to put an exact dollar amount on engine overhaul cost. What’s involved — parts and labor — varies widely depending on the condition of your equipment. An in-frame overhaul costs less than an out-of-frame overhaul. Both cost less than a Cat Certified Commercial Engine Rebuild.

Here’s what we can say for sure: An overhaul costs a fraction of what you’d pay to replace your engine or your equipment. And you can take advantage of special offers to save even more.

Turnaround times also vary, although 2-4 weeks is a good average. It’s smart to plan an overhaul around any downtime in your schedule, like a seasonal slowdown. Need to rent equipment while yours is in the shop? You can put it on your Cat Card.

Man working on engine with engine overhaul cost graphic

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Types of engine overhauls

What does the engine overhaul cost cover? It depends on the state of your equipment. Your Cat dealer will perform an in-depth inspection and recommend a solution. Typically, overhauls fall into two categories:

In-frame or top-end overhaul: Your engine stays “inside” the equipment while it’s being repaired. This type of overhaul requires fewer replacement parts and less labor, so it’s a cheaper option. You can often do it yourself: Overhaul kits are available for on-highway truck engines, marine engines, electric power generator sets and more.
Out-of-frame or major overhaul: Your engine is removed from the equipment and completely disassembled. This type of overhaul usually is required when a key component like a connecting rod, crankshaft or valve seat fails and causes extensive damage.

What’s the difference between an engine rebuild and an engine overhaul? The terms often get used interchangeably, but they’re not the same. A Cat Certified Rebuild returns your entire engine or generator set to like-new condition. It essentially restarts engine life at zero hours. An overhaul extends the life of your engine or generator set. It gives you additional working hours you wouldn’t get otherwise.

ENGINES ELIGIBLE FOR OVERHAULS

You can overhaul almost any engine or generator set Caterpillar makes. That includes products for these industries:

Electric power
Marine
Oil and gas
On-highway trucking
Rail

START PLANNING FOR ENGINE OVERHAUL COSTS NOW

Want more details about engine overhaul cost, turnaround time and exactly what’s included? Contact your local Cat dealer.

In the market for an overhaul now? Anticipating one in the future? Get started by applying for the Cat Card today. It only takes 5-7 minutes. Once you’re approved, you can use your Cat Card not just for overhauls, but also to buy parts or work tools, pay for repairs, rent equipment or add protection and service plans.

APPLY FOR CAT CARD

* See cat.com/catcardrewards for eligibility, details, and terms and conditions.