Land Rover Repair: 99 Discovery Engine Failure, disco 100, cost effective solution


Question
Hi John,

I have a 99 Discovery I, 90K miles, which recently experienced a complete engine failure (no compression) from overheating.  The overheating was unexpected as I have been good about scheduling service maintenance (the last service was at 80K miles).

The most affordable repair option for me right now is a salvageg engine for which I have received a complete estimate of $4500 (incl engine, some new parts and labor).  The alternative is that the same salvage shop will give me $1,700 for the vehicle.

My questions are:
1) The salvage engine is a 1996 Disco with 122K miles (with a 99 days warranty).  Is $4500 reasonable given the mileage on the salvaged engine?

2) Should I take the $1,700 and move on?  Can I get any more on this?  Where else do I go to see if there is any higher bidder?

While I am fortunate enough to afford the $4500 for the repair or can buy a new car, I would like to look for the most cost effective solution.

What would you do?

Lyn


Answer
Hi Lyn,

I'm  so sorry to read about your Disco engine.  $4500 is a big repair bill.  The alternative is not very good either - to give it to the garage for $1700.  If you are going to be charitable, I'll take it off your hands for that!

Lyn, if your Disco was in FAIR condition it would be valued at about $7500.  An EXCELLENT condition Disco with 90000miles would be valued at $9000 if sold privately.  These prices are the bare minimum!  If you trade-in a FAIR condition Disco, a dealer could give you $5000 - but that's for a DISCO with a functioning engine.  I've seen '99 Disco's for as high as $16,000US in excellent condition.

I was in your position 4 years ago when I had a major failure with my 1995 Disco.  The repair bill was close to $5000 then.  The dealer did not even suggest the option of buying the (then) 6 year old Disco.  There response was "pay me or tow it out".  I chose to repair the Disco. 100,000 miles later I still have it running.

Here is what I would do IF I was in your position AND knowing what I know now...

the 1999 Disco is by far the best Disco in the Series I line.  Some even think its better than the Series II. The 1996 Disco engine has more than its share of problems and I would not consider installing that engine into a 1999 Disco.

Consider what you could buy for $4500.  Weight-in other repairs that may be outstanding on your 1999 Disco, like oil leaks, water leaks in the footwells, alpine window leaks, ABS problems, air suspension problems.  All of these are common to all Disco's Series I and II and they are all expensive to repair.

I once asked a LR mechanic which Disco he would buy.  He immediately said, "the 1999 Disco".  Excellent engine management system, good braking system, fine interior.  If I had my choice in buying a Disco...that would be my choice...in a heart beat.  Just read the problems I've helped and count how many are from '99 owners.

So, to answer your questions:

1.  $4500 (labour included) for a 1996 engine is very high.  I've found several '99 engines with lower mileage for under $1500.  Check out www.car-part.com and do a search on your '99 Disco (SD?) and then select ENGINE as the part you are looking for.  You can do a National search or just a local one.  Lots of choice there.

Remember, if a LR dealer is doing this work, they'll charge a garage rate of $60 to $90/hour.  If you buy the salvage engine directly from a salvage yard, they'll usually install the engine at a lower rate AND offer the same or even better warranty than what you've indicated to me.  It may be to your advantage to check your local salvage yards for a price comparison.  They'll order the engine from across N.America.

2.  The $1700 offered for your 1999 Disco would set all sorts of alarms off in my mind.  If its a local garage, they either don't know the value OR they do and are trying to take advantage of the situation (shame on them).

IF this is a LR dealer, I'd be running (not walking) away and PUSHING my '99 Disco to the next dealership too!  They'd swap in a new engine and probably sell it for a huge profit at auction.  

If you are to sell this Disco, I'd consider eBay as one possible service.  You'll get more for it but you'll have to endure lots of questions and your fair share of ridiculous offers.  There are other auto sales services that can work for you too.  I'd use the internet to sell if I needed to do this.

I once bought a Buick Park Avenue with a blown transmission.  Cost me as much in repairs as I had paid for it BUT I knew it was worth it.  You may have to hold out until someone (who is reasonable) decides to give you what you think its worth.  

Remember, a FAIR condition '99 Disco (with a working engine) and high mileage could be purchased for as low as $7000.  Subtract a $3500 engine job (what I think its worth) and you could be looking at $3500 to $4000 for a starting price.   If all else is ok with your Disco...you can go up in value from there.  New tires, recent major repairs before the engine failure, will give some comfort to the potential buyer and can increase the value as your Disco stands right now.  

I get lots of email asking about used Disco's.  Those with engine problems are usually ignored UNLESS the price is good.  These buyers are willing to do the repairs and save a couple of thousand $ from the asking price of a good condition vehicle.  That's what I think is reasonable.  

IF you are 'fortunate enough' to be able to finance the repair...consider going elsewhere and getting a better engine.  Stay away from the '96 engine, especially one with high mileage...looks like someone is "throwing you a bone" in this case.  You could be getting an engine that's in need of a valve job (common problem with this engine).

Look to low mileage '98 or '99 engines.  You won't find another luxury 4x4 for under $5000...unless you are also considering the ridiculous gas prices we are all paying!  Its close to $6.50 a gallon here in Canada!

Lyn, I wish you the best luck in this.  Again, its sad when I read about Disco's with major work that is needed and I get even more upset when I see someone being mislead or 'taken'.  Don't give your Disco away for $1700.

Regards,

JohnMc

NB:  If you need help locating a salvage yard or to get some other price quotes, or if you want to discuss this further you can reach me at jmcinnis64@hotmail.com.