Infiniti QX60 End of lease issue with a major twist

My wife has a 2019 QX60 which is set for lease termination in the next 14-days or so. Slightly under mileage of a 39-month lease, residual approximately $30k. Vehicle is in very good condition with one (MAJOR) twist.

Several months ago, the engine light came on and - as typically the case - we assumed it was something minor. It was not; the engine had developed oil sludge and after flushing engine oil, etc. the problem got worse. Infiniti refused to fix under warranty, claiming it was an oil changing issue. While in COVID, we were staying at a location without any nearby Infiniti dealer and had oil changed at 3rd party vendors. We had engine inspected by 3rd party mechanic, and long story short the engine has seized up entirely and the engine needs to be replaced. An Infiniti-installed new engine has a rack price of around $18k.

I don’t want to go down the rabbit hole of what we need to do to pursue relief on what happened, but am interested in my immediate options to deal with this. I know at least in the near-term I’m going to eat a 10-18k price for an engine replacement, but I’m trying to determine the best manner to handle this.

Option A is to buy out the lease, pay retail price to replace the engine, and then use/sell/or trade the vehicle in the usual manner. End result would be eating cost of engine replacement (absent success of other remedies I might pursue) but that cost being partially offset by equity I would have in the car past residual. For example, 18k engine repair offset by say $4,000 equity over residual an I have a $14k loss.

Option B (which would seem best option if available) is to find an Infiniti dealer that would want the vehicle as is and is able to repair it themselves for far less than the retail cost. For example, they pay $20k for car as is, my buyout is $30k and my loss is $10k (which would also be simpler and less time consuming). Let’s say the actual cost for the dealer to replace the engine is $10k, they dealer then has purchased the car for effectively $30k in cost and presumably could resell for $36-38.

I see Infiniti purchase brokers on here sometimes and would be interested in chatting with them if they have interest in the vehicle under these circumstances.

Option C (which seems worst option) is to turn the vehicle in as is, at which point I will lose both the cost of repair at whatever Infiniti chooses to price it as well as any lease residual equity that would exist after the repair.

Any advice on which option to pursue (especially leads on Option B) would be very much appreciated! Obviously a painful situation - and I may have some remedies which are beyond the scope of this thread - but I’m determined to find the best short term path and turning the page on this. Thanks!

Do you have receipts from the oil changes you had performed?

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We’ve been trying to reconstruct that, which is another story. For purposes of this thread, though, I’d like to focus only on my immediate disposition options as opposed to remedies for Infiniti not covering the repair.

All of your paths infront of you other than making infiniti honor the warranty are going to be very painful.

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If you’ve performed the required oil changes (and can prove it) you shouldn’t have to eat it either way.

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Not sure how you’ll get quotes from various dealers for B if they end up wanted to inspect it other then keep towing it around.

For C can you find out the hit with an end of lease inspection?

If you are prepared to pay one way or another, I’d suggest contacting a mechanic knowledgeable on this platform and seeing what they recommend.

Maybe installing a used engine instead of a new crate one.

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Yes, I’m very well aware.

Yes, I have quotes on installing a used one, but that obviously hurts the resulting value of the vehicle. Multiple third-party mechanics confirm this engine will need to be replaced. Cost of engine replacement from Infiniti would be @ 18k.

FWIW, I’m an attorney and understand my legal options and avenues of recourse long term (which given the very manufacturer-friendly language of car warranties aren’t as straightforward as it might seem). However, that is a process and one that will play out over time.

As an aside, the local Infiniti dealer will value the vehicle as a trade at 20k as is (10k less than residual) as part of a trade if I purchase another vehicle from them, but I have little interest in purchasing another Infiniti for obvious reasons.

Not sure who you intend to sell to that is going to verify whether the engine is a used one or a crate one.

  • extend the lease to deal with the repairs
  • make the repairs with a qualified third party as cheaply as possible- find out what Infiniti will accept (does it need to be a new engine?)
  • turn it in
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I’m pretty sure the Florida Odometer Verification would require disclosure of a miles discrepancy in this instance, not to mention it is likely to be reported in a Carfax report. It also would not be covered by Infiniti factory warranty as would the rest of vehicle. The cost differential between new engine by Infiniti and third party rebuilt, after installation, is about $5k and I think under those circumstances it makes sense to replace with new Infiniti-installed engine.

+1 - This is a fantastic idea. Find a used engine, have it installed by an independent mechanic. Turn your QX60 into Infiniti. Walk away.

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Thanks for advice, that’s definitely an option. We’ll almost certainly have to extend lease a month to deal with repairs (unless I just buy out the car).

The issue with this approach is that it leaves lease equity on the table. After engine replacement, the car will be worth more than the lease residual, so it doesn’t make sense to turn in the lease at that point. That would lead me back to just purchasing car, replacing engine, and then selling/trading vehicle, which would at least provide some offset to what I’m losing on the repair because of some + equity.

Certainly no good options, only the best of bad options!

No No No GIF

But then you have to find a buyer for a luxury SUV which is known to be problematic, which has demonstrated it is in fact a problem. Save money on labor with a third party repair shop, let IFS keep their liability on this POS. Don’t buy it out.

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Given the unknown with how long the replacement takes and how much of a hit it could have on value, I would really try to get a sense for option C.

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Do you know the damage fee from Infiniti for a blown engine at turn in? It may be lower in cost (if it is even an option) to just give it back and let them deal with it. Someone (inspector, IFS- dealer) should know the magic number.

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$18k is Infiniti replacement cost. Repair time if I decide to keep car and have it done is 10-14 days.

You are overestimating the value of an old-gen QX60 with an engine replaced, even if new.

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Florida Odometer Verification would require disclosure of a miles discrepancy in this instance

no.