Engine Overhaul or New Truck? A Brutally Honest Guide for Small Carriers Facing the Big Diesel Decision

Most overhauls don’t come out of nowhere. Your engine whispers before it screams. And if you’re paying attention, it’ll give you time to plan before it forces you off the road.

Here are some of the most common signs that you’re approaching overhaul territory:

• Excessive Oil Consumption: If you’re adding a gallon of oil every couple thousand miles, your rings or valves could be failing.
  
• White or Blue Smoke: Blue means burning oil. White could mean coolant (could be a head). Either way, that’s a repair bill coming.
  
• Poor Compression or Power Loss: You push the pedal, and the truck feels like it’s lost power it once had? Time to check compression. A dyno test can also point out this.
  
• Fuel Economy Drops Off a Cliff: If you’re down to 4–5 MPG and can’t trace it to the trailer or load, your engine may be starting to wear down.
  
• Frequent Regens or Fault Codes: Your emissions system (DPF, DOC, SCR) is under stress, which usually means your engine is too.
  
• Metal in the Oil Filter: This one’s self-explanatory. Metal shavings = internal wear.
  

Here’s the deal: A failing engine rarely fails quietly. But too many small carriers ignore the signs (some have no choice as money gets tight), trying to squeeze another 10,000 miles out of something that’s already dying. That gamble can lead to catastrophic failure—and catastrophic cost.

What’s Inside an Overhaul (and Why It’s So Expensive)

Let’s break it down.

A full in-frame or out-of-frame engine overhaul usually includes:

• Pistons and liners
  
• Cylinder head service
  
• Crankshaft and camshaft inspections
  
• New gaskets and seals
  
• Turbocharger evaluation or replacement
  
• EGR and DPF system work (depending on mileage)
  

Now for the cost.

Depending on your make/model, shop labor rates, and parts pricing, a quality overhaul can range from $12,000 to $25,000+—and that’s if there are no surprises inside. Some quotes we’ve seen even hit $40,000 when you factor in emissions components.

Pro tip: Don’t go bargain shopping here. Poor workmanship can turn an overhaul into a rolling disaster.

If the shop can’t show you a build sheet, part numbers, terms, and before/after compression readings… walk.

How to Know If an Overhaul Is Worth It

You’re now at a crossroads. Here’s how to evaluate your options with clarity:

Choose an Overhaul If:

• You own the truck outright or have low payments
  
• Your transmission, frame, and drivetrain are solid
  
• Your truck has sentimental or business value (e.g., pre-ELD, pre-emissions, or customized sleeper)
  
• You have documentation on the truck’s service history
  
• You’re confident in the shop and parts warranty
  

Walk Away If:

• Your truck is in poor condition mechanically, constantly in the shop, or in simple terms, outdated
  
• You’re leasing or still upside down on a high-interest loan
  
• The repair cost exceeds 50–60% of the truck’s current market value
  
• Your cash flow can’t handle the downtime + rebuild + catch-up bills
  
• The emissions system has been problematic even when the engine was strong
  

Don’t get romantic. This is a business decision. If your overhaul is just delaying the inevitable—and draining working capital in the process—it might be smarter to re-invest into a newer, better-spec’d truck.

Here’s the Math:

Let’s say a truck’s market value is $60,000.

If the overhaul quote is $35,000, and you’re still facing transmission, DPF, or body work repairs on top of that… it may not pencil out.

On the flip side, a $28,000 overhaul on a well-maintained truck with a known service record can extend your asset life by 3–5 years. That’s leverage.

How Overhauls Affect Your Operations and Taxes

Let’s not forget the non-mechanical side.

1. Downtime

A quality overhaul takes 2–4 weeks minimum. That’s a month without revenue. Are your reserves deep enough to float payroll, insurance, truck note, and home bills?

2. Warranty

Shops vary wildly here. Look for:

• 1 year/100,000 mile minimum
  
• 2 years/200,000 for premium kits
  
• Nationwide coverage (not just local shop support)
  

3. Tax Implications

Overhauls are capital improvements, not write-offs like tires or PMs. That means depreciation instead of expense. Talk to your accountant.

You might depreciate the engine work over 3–5 years or use Section 179 if your business qualifies. Don’t assume—ask your tax pro.

Extending Life After the Rebuild

If you choose to overhaul, protect the investment:

• Break in the engine properly: Be sure to follow the tech instructions specifically, no idling for long stretches, and no heavy loads at low RPMs, etc.
  
• Flush and replace fluids at required intervals: That includes coolant, DEF, and transmission fluid. Don’t trust “lifetime fill” claims.
  
• Monitor boost, temps, and oil pressure: An engine gauge cluster is your early warning system.
  
• Use quality oil and fuel: Aftermarket additives are optional, but clean fuel and factory-spec oil is non-negotiable.
  
• Track everything: Keep a dedicated folder (digital or paper) with receipts, compression test results, and warranty documents.
  

Frequently Asked Questions

Q: Can I finance an overhaul?

Yes. Many shops work with lenders like CAG Truck Capital or offer their own payment plans. Expect to show business financials and insurance. APRs vary from 7% to 20%.

Q: Is it better to get a reman engine instead?

Depends. Reman engines (like those from Detroit, Cummins, or Cat) often come with better warranties but cost more—up to $50,000 installed. A reman can be a safer bet if your block or head is compromised.

Q: Should I buy a used truck instead?

Used doesn’t mean better. You’re trading known problems for unknowns. And if it’s a pre-2020 emissions truck with no overhaul records? You might just inherit someone else’s ticking time bomb.

Q: Will an overhaul increase my truck’s resale value?

Slightly—but not dollar for dollar. You’ll retain value better and attract more buyers, but you won’t get 100% ROI unless it’s a rare truck or the market is tight.

Final Thought: Think Like a CEO, Not Just a Driver

Look—this industry doesn’t hand out second chances easily. If your truck is waving the white flag, it’s not the end of the road. But it is a crossroad.

Some will overhaul and extend the life of a paid-off workhorse. Others will cut bait and start fresh with better specs and lower emissions headaches.

The key is not emotion—it’s facts.

Run the numbers. Ask the hard questions. Don’t be afraid to walk away from a truck if it’s dragging you into debt. But also don’t fall for the lie that new always means better.

In the end, the right call is the one that keeps you in the game… profitably.