The average Volvo S60 engine replacement cost typically ranges from $4,000 to $8,000 or more, depending on model year, engine type, labor rates, and whether you choose a new, used, or remanufactured engine. By comparing quotes from independent Volvo specialists, sourcing quality used or rebuilt engines, and checking warranty coverage, you can significantly reduce your total Volvo S60 engine replacement bill while protecting long-term reliability.

Volvo S60 engine replacement cost guide and savings tips

If you own a Volvo S60, you probably love how solid and safe it feels. The ride is smooth, the cabin is quiet, and it has that “I’ll take care of you on long trips” vibe. That is why the thought of a major repair, like an engine swap, can make your stomach drop.

Hearing the words “you might need a new engine” is scary. Your mind jumps straight to the bill. Will it cost more than the car is worth? Should you fix it or sell it? Is there any way to save money without ruining the car?

This guide will walk you through the real-world Volvo S60 engine replacement cost, what affects the price, and how to cut that cost down. We will keep the language simple and focus on things you can actually use, not just theory. Think of this as advice from a friend who has spent way too much time talking to mechanics.

Key Takeaways

• Expect a wide cost range: Volvo S60 engine replacement typically runs $4,000–$9,000+ depending on engine type.
• Labor drives the bill: Labor can be 40–60% of total cost, so compare shop hourly rates.
• Choose engine type wisely: Used, rebuilt, or remanufactured engines offer big savings over brand-new OEM units.
• Verify diagnosis first: Confirm the engine is truly failed; some issues need cheaper top-end or component repairs.
• Shop multiple quotes: Get written estimates from dealers and independents, itemizing parts, labor, and extras.
• Check warranty coverage: Prioritize engines and shops offering strong parts and labor warranties for peace of mind.
• Plan for extra costs: Budget for fluids, mounts, hoses, sensors, and possible towing or rental car fees.

Quick Answers to Common Questions

How much does a Volvo S60 engine replacement cost on average?

The typical Volvo S60 engine replacement cost ranges from $4,000 to $8,000, depending on the engine type, model year, and where you have the work done.

Why is the Volvo S60 engine replacement cost so high?

The Volvo S60 engine replacement cost is high because it includes a pricey engine assembly, many hours of specialized labor, and often extra parts like gaskets, fluids, and sensors.

Is it cheaper to rebuild instead of paying full Volvo S60 engine replacement cost?

Yes, a rebuild or remanufactured engine can sometimes lower your Volvo S60 engine replacement cost by $1,000–$2,000, but it depends on the damage and the shop’s expertise.

Can a used engine significantly reduce my Volvo S60 engine replacement cost?

Choosing a low-mileage used engine can cut your Volvo S60 engine replacement cost by 30–50%, though you’ll want a solid warranty and trusted installer.

Does insurance ever cover Volvo S60 engine replacement cost?

Insurance usually doesn’t cover Volvo S60 engine replacement cost for wear and tear, but it might help if the engine was damaged in a covered accident or event like flooding.

What does a Volvo S60 engine replacement really cost?

Typical cost ranges you can expect

Let’s start with the big question: how much does a Volvo S60 engine replacement cost? The exact number will depend on the year, engine type, and where you live, but here are ballpark figures:

• Used (salvage) engine: $2,500 – $4,500 installed
• Rebuilt/remanufactured engine: $4,000 – $7,000 installed
• Brand new crate engine (if available): $6,500 – $10,000+ installed

Most owners fall somewhere in the middle. For many model years, a realistic Volvo S60 engine replacement cost at an independent shop is often in the $4,000 – $6,500 range. A Volvo dealer, on the other hand, can be closer to $6,000 – $9,000 depending on parts and labor.

How the model year and engine type change the price

The S60 has used different engines over the years, and that affects both parts and labor:

• Early 2000s S60 (5-cylinder turbo/non-turbo): Engines are more common in salvage yards. Parts are cheaper, and many shops know these well. Total costs tend to be on the lower end.
• 2011–2018 T5/T6 engines: More complex turbo setups and tighter engine bays. Labor can be higher, and used engines may be harder to find in good shape.
• Newer Drive-E 4-cylinder engines: More electronics and emissions hardware. These can be pricey to replace, and you really want a shop that knows modern Volvos.

In short, newer and more complex engines usually mean a higher Volvo S60 engine replacement cost.

Sample cost breakdown

Here is a simple example of how a typical bill might look at an independent shop using a used engine:

• Used engine (tested, low mileage): $2,000
• Labor (18–24 hours @ $120/hr): $2,160 – $2,880
• Fluids, gaskets, seals, misc parts: $250 – $500
• Taxes, shop fees: $150 – $300

Estimated total: $4,560 – $5,680

Your numbers will be different, but this gives you a feel for how the Volvo S60 engine replacement cost adds up.

Main factors that affect Volvo S60 engine replacement cost

1. Type of engine you choose

The biggest choice is whether you go with a used, rebuilt/remanufactured, or new engine.

• Used engine: Cheapest option. It comes out of another car, usually from a salvage yard. It may have a short warranty (30–90 days, sometimes up to 1 year). Good if you are on a tight budget or the car is older.
• Rebuilt/remanufactured engine: More expensive, but parts inside are repaired or replaced. Often comes with a 1–3 year warranty. Good balance of cost and peace of mind for many owners.
• New engine: Usually the most expensive and often only available through the dealer. Makes the most sense on a newer S60 that is still worth a lot of money.

Each step up in quality tends to add $1,000–$3,000 to the Volvo S60 engine replacement cost.

2. Labor rate and hours

Engine replacement is not a quick job. It can take 16 to 25+ hours depending on the engine and how much needs to be moved out of the way.

Now add labor rate:

• Independent shop: $90 – $150 per hour
• Dealer: $150 – $250+ per hour

Even at the same number of hours, a dealer can easily add $1,000–$2,000 more in labor alone to your Volvo S60 engine replacement cost.

3. Extra parts and “while we’re in there” items

Swapping an engine often exposes other worn parts. Some are smart to replace at the same time:

• Motor mounts
• Belts and hoses
• Water pump and thermostat
• Turbo oil lines (for turbo models)
• Spark plugs and ignition coils

These add to the bill, but they can save you from paying more labor later. Expect an extra $200 – $1,000 depending on what you choose to replace.

4. Location and shop type

Where you live matters. A shop in a big city with high rent will charge more than a small-town garage. Also, a shop that specializes in European cars may have a higher hourly rate, but they often work faster and avoid mistakes.

Sometimes paying a bit more for a Volvo-savvy shop can actually reduce your total Volvo S60 engine replacement cost, because they do it right the first time.

Cost comparison: dealer vs independent vs DIY

Typical price ranges by option

Here is a simple table to compare different paths you might take:

Option	Estimated Total Cost	Pros	Cons
Volvo dealer (reman/new engine)	$6,000 – $9,000+	Factory parts, strong warranty, dealer-level diagnostics	Highest Volvo S60 engine replacement cost, less flexible on parts
Independent Euro specialist (used/rebuilt)	$4,000 – $7,000	Lower labor rate, knows Volvos, more options for engines	Warranty varies, quality depends on shop
General independent shop	$3,500 – $6,000	Often cheaper, more willing to work with used parts	May lack Volvo-specific tools and experience
DIY with used engine	$1,500 – $3,000 (parts only)	Lowest cash outlay, full control over parts	Very complex, needs tools, space, and skill; no labor warranty

When a dealer makes sense

Paying dealer prices is painful, but sometimes it is the right move, such as:

• The car is fairly new and still worth a lot on the market.
• You want a factory-backed remanufactured engine and a strong warranty.
• You do not have a trusted independent Volvo shop nearby.

In those cases, the higher Volvo S60 engine replacement cost can be a kind of “insurance” in the form of warranty and proper documentation.

When an independent shop is a better fit

For many owners, a good independent shop is the sweet spot. You may save $1,500 – $3,000 compared to the dealer, and still get:

• A decent warranty on the engine and labor.
• More flexibility to choose used or rebuilt engines.
• Honest advice about what is worth replacing while the engine is out.

Ask if they have done Volvo S60 engine swaps before. If they can show photos or invoices (with personal data hidden), even better.

Is DIY realistic?

Swapping an engine in a modern Volvo is not like changing brake pads. You need:

• An engine hoist or lift
• A good set of tools
• Space to keep the car parked for a while
• Comfort with wiring, sensors, and tight spaces

If that sounds normal to you, DIY can cut your Volvo S60 engine replacement cost by thousands. If it sounds terrifying, it is probably not the right project to learn on.

How to decide if an engine replacement is worth it

Compare repair cost to car value

Before you commit, compare the repair bill to what your S60 is worth in good running shape. You can check sites like Kelley Blue Book or look at local listings.

• If the Volvo S60 engine replacement cost is less than half the car’s value, it is often worth doing.
• If the cost is close to or more than the value, you need to think harder.

Example: If your S60 is worth $8,000 and the engine job is $5,000, it might still make sense if the car is clean and you plan to keep it for years.

Consider the overall condition of the car

The engine is not the only thing that matters. Ask yourself:

• How are the transmission and AWD system (if you have it)?
• Any major rust or body damage?
• Suspension, brakes, and tires in decent shape?
• Any long-standing electrical gremlins?

If everything else is falling apart, throwing a fresh engine in might not be smart. But if the car is otherwise solid, a new engine can give it a second life.

Think about how long you plan to keep the car

If you love your S60 and want to keep it for another 5+ years, spreading a $5,000 repair over that time is easier to swallow. It is often cheaper than buying a new car and paying monthly for years.

On the other hand, if you were already thinking about upgrading, you might be better off selling the car as-is and putting that engine money toward your next vehicle.

Ways to reduce your Volvo S60 engine replacement cost

1. Get multiple quotes

Do not stop at the first estimate. Call or visit at least 3 different shops:

• One Volvo dealer
• One European specialist
• One well-reviewed independent shop

Ask each for a written estimate that lists:

• Engine type (used, rebuilt, reman, new)
• Warranty terms
• Estimated hours of labor and rate
• Any recommended extra parts

Sometimes you will find a big gap in labor rates or parts markup. That is your chance to lower your Volvo S60 engine replacement cost without cutting corners.

2. Source your own engine (carefully)

Some shops will install an engine you buy yourself. This can save money, but you must be careful.

If you go this route:

• Use a reputable recycler or engine supplier, not just a random online ad.
• Get the VIN of the donor car and confirm compatibility with your exact year and engine code.
• Ask for compression test results or mileage proof if possible.
• Get the warranty details in writing.

Then, ask your shop if they are comfortable installing it. Note that some shops may not warranty labor if you supply the engine, which can affect your total Volvo S60 engine replacement cost if something goes wrong.

3. Choose smart “while you’re in there” items

Replacing some parts during the engine swap can save you money long term. But you do not have to say yes to everything.

Good items to approve:

• Hard-to-reach gaskets and seals
• Timing components (if applicable to your engine)
• Water pump and thermostat
• Motor mounts if cracked or soft

Items to think twice about if you are tight on cash:

• Cosmetic upgrades
• Performance parts you do not really need
• Non-critical accessories that can be done later

Ask the shop to mark which items are urgent, which are recommended, and which are just nice to have. This helps you control the final Volvo S60 engine replacement cost.

4. Time the repair and ask about financing

If your engine is dying but the car still runs a bit, you may have time to:

• Save up for a month or two.
• Shop around for better quotes.
• Check for seasonal discounts or coupons at local shops.

Some shops also offer payment plans or work with financing companies. This does not reduce the total Volvo S60 engine replacement cost, but it can make it more manageable month to month.

5. Avoid future engine damage

Once you have a new or replacement engine, protect your investment so you never have to do this again:

• Change oil and filter on time, with the correct spec oil.
• Fix coolant leaks right away.
• Watch the temperature gauge and never drive it while overheating.
• Use quality fuel and avoid long-term misfire issues.

These simple habits can add years to the life of your engine and keep your Volvo S60 engine replacement cost as a one-time pain, not a repeat event.

Real-world examples and what you can learn from them

Example 1: Older S60 with a used engine

Imagine a 2007 Volvo S60 2.5T with 180,000 miles. The engine spins a bearing and needs major work. The car is worth about $4,000 in good shape.

• Used engine with 120,000 miles: $1,800
• Independent Euro shop labor: 20 hours @ $110/hr = $2,200
• Fluids, gaskets, misc: $300

Total: $4,300

Here, the Volvo S60 engine replacement cost is close to the car’s value. But if the body is clean and the owner wants to keep it for 3–4 more years, this can still be a reasonable choice.

Example 2: Newer S60 with reman engine at dealer

Now take a 2017 Volvo S60 T5 with 90,000 miles and a failed engine due to oil starvation. In good shape, it might be worth $13,000–$15,000.

• Volvo remanufactured engine: $4,000 – $5,000
• Dealer labor: 22 hours @ $190/hr = $4,180
• Extras and taxes: $600

Total: around $9,000

That is a big number, but the car is still worth more than the repair when done. With a strong warranty, this can make sense for an owner who wants a reliable car for many more years.

Example 3: Owner decides to walk away

A 2003 S60 with rust, a tired interior, and a slipping transmission blows its engine. Even in perfect shape, it might only be worth $2,500.

Quotes for a replacement engine come back between $3,500 and $5,000. In this case, the smart move is often to sell the car as-is for parts or scrap, and put that money toward another vehicle. Knowing the realistic Volvo S60 engine replacement cost helps avoid throwing good money after bad.

Conclusion: Making a smart call on your S60

Facing a dead or dying engine in your Volvo can feel overwhelming. But once you break it down, the Volvo S60 engine replacement cost starts to make more sense. You see where the money goes, what choices you have, and where you can actually save.

The key steps are simple:

• Get clear, written quotes from different types of shops.
• Decide on used, rebuilt, or new based on your budget and how long you plan to keep the car.
• Compare the repair cost to the real value and condition of your S60.
• Use smart savings tips, like sourcing a quality engine and choosing the right extras.

If you still love your Volvo S60 and the rest of the car is in good shape, an engine replacement can be a solid investment that gives your car a fresh chapter. If not, at least you will know the numbers well enough to walk away with confidence, instead of guessing.

Either way, understanding the true Volvo S60 engine replacement cost puts you back in control of the decision, instead of feeling at the mercy of the repair bill.

Frequently Asked Questions

How much does a Volvo S60 engine replacement cost on average?

The average Volvo S60 engine replacement cost typically ranges from $4,000 to $8,000, including parts and labor. The final price depends on your model year, engine type, labor rates in your area, and whether you choose a new, used, or remanufactured engine.

What factors affect Volvo S60 engine replacement cost the most?

The biggest factors are the engine type (turbo, T5, T6, hybrid), whether the engine is new, used, or remanufactured, and local labor rates. Additional costs can come from replacing related components such as motor mounts, sensors, hoses, and fluids during the job.

Is it cheaper to rebuild or replace a Volvo S60 engine?

Rebuilding can sometimes be cheaper than a full replacement, especially if damage is limited and core components are still usable. However, a remanufactured or low-mileage used engine may offer better reliability and warranty coverage for a similar or slightly higher price.

Can I save money on Volvo S60 engine replacement by using a used engine?

Yes, using a used or salvage-yard engine can significantly reduce your Volvo S60 engine replacement cost, often by $1,000–$2,500 compared to a new unit. Be sure to verify mileage, service history if available, and any warranty offered by the seller or installer.

How long does a Volvo S60 engine replacement usually take?

Most Volvo S60 engine replacements take between 10 and 20 labor hours, which often translates to 2–4 business days at the shop. Delays can occur if parts are on backorder or if the mechanic discovers additional issues during the swap.

When is it not worth paying for a Volvo S60 engine replacement?

It may not be worth replacing the engine if the car’s market value is close to or below the total repair cost, or if it has other major issues like transmission or rust problems. In those cases, selling the vehicle as-is or for parts and putting the money toward a newer car can be a smarter financial move.