New 2023 Cadillac Escalade Engine failure

I am posting to ask advice. I purchased a 2023 Cadillac Escalade 4WD Sport Platinum with onyx package back in May 2023 for 130k. Fast forward 3 months and we have had a major issue. The car completely died out of the blue last week and was towed to the local dealership where it was purchased from. They have determined it was an engine failure and will be planning to do a complete new engine replacement. The car has maybe 4k miles on it and was bought brand new (at a 5k markup might I add). And otherwise running perfectly fine and being taken car of well. I am shocked as to being told it needs a new engine. The service advisor is telling me it could be in average 1 mo all the way up to 6 mo to get the new engine due to supply chain issues. So the question is am I entitled to any form of compensation while they are fixing my car? Does having a new engine replacement at not even 5k mi suggest major red flags on the car and should consider getting rid of it? We are really enjoyed the car as a family but now I am having second thoughts on this major purchase which is having major technical failures. Thankfully it is all covered under warranty so I am not paying anything out of pocket. Only the inconvenience of dealing with this all. Btw, they gave me a loaner Escalade for the past week but now are asking for it back because they apparently sold the vehicle today and asking me if it is okay to drive a Chevy Subrlyrban in the meantime. I’m a little ticked off by this. In my mind, I think they should waive my car payment while I wait for my car to be fixed bc I would be making pmts on a car I am not driving. Any thoughts / suggestions would be appreciated. Ty in advance.

A trouble new car owner

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Dump it asap


If you want some type of compensation, you may have to see if you can escalate to corporate (Cadillac, or GM?) and if they’ll do something for you. You’ll want the dealership on your side so they can be your advocate and add to your voice too. Persistence…

If you want to get rid if it, check your state’s lemon laws or speak to a lemon law attorney.

But a blown (new) engine is unfortunate but happens. Did they tell you what exactly happened that caused the catastrophic failure?


Spend some time familiarizing yourself with Florida Lemon Law. You likely need to be out of service for 30+ days or require a certain number of repairs. They won’t defer payments but they should put you in a loaner/rental that is comparable-ish. Take the loaner and let them order an engine, it doesn’t cost anything to speak with a lemon lawyer while you wait.


In the past, I have had a brand new Mazda, that had engine failure in the first year. It was changed under warranty. When it came time to sell/trade that vehicle in a few years later, that engine replacement was there in the vehicle history, and affected the value negatively.

So, that’s another thing you need to consider going forward, as you decide whether to keep the vehicle or not…


Agree with this, any other suggestions are nonsense as your value is killed with a replacement engine.

You paid $135k for a new Escalade with a new engine, not $135k for a Escalade with 4k miles and a replacement engine showing on a Carfax report or in the vehicle service history. Run this up the food chain with Cadillac CS and maybe GM CS if need be until you get a brand new replacement vehicle. This is not a $20k Jetta.


While they should make it up to you , I doubt you are entitled for anything more than a “fix” and a “ comparable “ loaner , legally speaking. Make a stink until you get more than bare minimum.

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You aren’t “entitled” to anything, but you certainly can get a replacement if you try.

Look at all of the Ram 2500/3500 trucks that had Bosch fuel pumps that grenaded the fuel system, rails and blocks in $75-$100k+ trucks. Many of those were simply replaced by FCA as goodwill buybacks.

Absolutely this. If you were a buyer, just think about whether you would consider a used car that had a blown up engine in it’s carfax. I honestly can’t believe that you need to go through these long wait times on a car that costs this much. What’s the difference between this and a versa? Meanwhile you make exorbitant car payments to drive a suburban. lol

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Oh my.

This actually isn’t the first time I’ve heard of engine failure on this generation believe it or not. Not saying it’s widespread but certainly more commonplace than I’ve ever heard of before.

I’d be raising cane for sure if it was me.

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Yep. GM is not going to treat a top of the line customer poorly on this when they can simply and quietly get you in another Escalade, replace that engine in the sidelined rig (at their cost for very little) and make that ride a corporate fleet vehicle to beat on for a few years.

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If you want compensation, you have to make a complaint with Cadillac. Engines and other parts are suddenly available when it is going to cost them even more money. It also makes sense to see if they will give you a new Escalade if you end up in lemon territory. It will again cost them a lot more to resell it as a lemon.

Otherwise, not much you can do about a loaner. It is up to the dealer’s discretion as to if they give you a loaner and what type, although you can certainly request an Escalade if they have one available.


Definitely jump ship. Whether that means getting a replacement car or working out some sort of buyback, do what you need to do to get out. The Escalades are already known for tanking in value. Can’t imagine what this one will look like with an engine replacement on the carfax.

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You still want one @Supakimchee


Consult a lemon law attorney. Should be able to get you compensation for decreased value or refund/replacement vehicle. No cost to you, manufacturer is required to pay legal costs separately from whatever settlement you get.

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FL has two presumptions in their lemon law, based upon the excessive downtime (per the dealer) send them (GM / Cadillac) a notice requesting a final repair attempt, they have 10 days to complete the repair. U need to CC the state AG’s office. After the 10 days has lapsed, it’s presumed a lemon if the non conformity impaired the use, value, safety. Chapter 681 Section 102 - 2018 Florida Statutes - The Florida Senate

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probably caused by AFM lifters just like the rest of GM’s V8 engines

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New body style certainly isn’t tanking in value these days. These have been selling for over msrp since they came out and finally are back to at msrp some dealers without a huge wait (excluding the V). Sports are still very hard to get, which is why getting a replacement vehicle would be tough for the OP but def possible if you bitch to the right people long enough.

But as others said one with a replaced engine would be worth considerably less on the used market. I’d pursue a lemon law in it for sure. Driving a suburban with Escalade payments potentially for 10 months is unacceptable.

My local caddy dealer…

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Stay away from GM, Jeep, Mercedes and BMW. Overpriced junk.

I’m surprised that this is calling for a complete engine replacement and not just replacing broken components inside it if it’s something like the valvetrain (lifters, valves, springs etc.)

If it was my car I would be escalating and asking for a buy back, how good is your relationship with the dealer? If you are a repeat customer I imagine they would be willing to advocate to GM corporate for you.