Moving target
I am shortly going to start building an RV 10 and am wondering what the advantages of buying a new engine vs a factory zeroed one. does anyone have the gouge on this?
First you are far away from buying an engine. The best thing you can do is make and save money. #2 don't buy your engine before you need it. You should be working on your finishing kit before ordering an engine. No need to have an expensive engine sitting around gathering rust. If you are going used, it does not hurt to start looking for a good core. The question is all about money. If money is not the issue than buy new for sure. Even if money is the issue, new can still be a better value. I'll explain below. Just for a bench mark a brand new IO-540 Lyc is about $39,000.00. A new 4 banger is only about $20k. (Heck buy two 4-bangers and put them on each wing; make a twin!
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Back in the day when used engines where more plentiful and Eci and Superior did not have their clones, used was the best way, almost the only way. Now we have new engines from three sources (Lyc, Eci, Sup) for not a lot more than buying a core and rebuilding it. So if I was buying an engine today I would go new, probably through Mattituck, or the ECI engine build-it-yourself engine kit, from new parts. The latter will save a few grand if you assemble the engine and really is not much more than buying a used engine and doing a compete overhaul with an all new top end.
If you ever have rebuilt an engine, there can be some come to reality moments, like getting word your crank is bad, for example. If you had been flying the engine and know its history, usually this does not happen, but a used core sitting on tire in the corner of a hanger, is more risky. Off the top of my head, a new 4 banger crank starts at about $4,500(?). A 540 crank is going to be way more. You can look it up. My point, if you buy a core and a major part is bad (case, cam, crank), it will ruin the savings you where hoping for by going used. Also if you don't do some of the work your self, just farm it all out, the savings over new is going to be almost a wash. However a used engine with a quality rebuild and all new top end is a good engine. As good as new? Well lets say equivalent. Parts do wear out, but chance is you will not out live the part wear.
Going new or having it rebuilt by a pro has the advantage of warranty and sometimes initial break-in and checks on an engine stand.
Warning, if you pay too much for a core or get a bad one, it can ruin the economy. People want certified parts money for their engine. Fair enough, but as experimental guys, we can buy a "clone engine" for significantly less than certified engines. You don't need certified engine pedigree for a home-built. It servers no purpose unless you plan on putting that engine in a certified plane later, which I think is unlikely. A Clone engine is really made of all certified parts.
A new clone engine in your airplane will be a plus for resale. Let's say you where looking to buy a flying RV, and it was down to two with the same hours on airframe and engine: One RV had a Mattituck installed new and the other had an engine installed after OH with a story (out of a XYZ plane, rebuilt by Joe). I'd prefer the Mattituck.
You have to look at your pocket book. Start looking for a good used engine and hope you get lucky. Other wise work lots of over time, save your money and when you're ready for your engine, no sooner, order it.
There is sweat equity and taking risk on buying used engines. The (max) reward or savings, used v new, is 5 to 7 grand on a 4-banger, if all goes your way. A 540 might have a greater savings(?). The new engine is a no brain'er, low risk and no sweat equity (besides working to make the money to buy it).
George
PS: I should mention what I think the best deal is, a builders dream, is a USED engine FWF out of a RV, that has good time left, flying and in good condition. That is the money saver. You'll have to rebuild it sooner, but you get into the air with less cash. How do you get those? LOOK for it. Some times planes go to insurance auction damaged with good engines. People buy whole planes (damaged) just for the engine / prop, parting out the rest. A O-540 or IO-540 would be in a Piper Cherokee 6, C-182RG or a twin, like an Aztec (two engines, sell one, keep one). You're bidding against Pros that know a good deal, so don't plan on getting it for free.
There's still (financial) risk buying damaged planes. With a new engine, call, write a big check and wait for the truck company to knock on the door.