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Hello all! I purchased a 2005 Forester XT a little over 2 weeks ago. The car has just over 120k. I purchased it from a dealer and the vehicle was sold “as-is” due to age. While test driving everything seemed fine. The car pulled as it should and didn’t have any notable sounds or smells. After driving the car back home ~300 miles and then a couple more days it was about a quart low on oil. I got the oil changed and topped off at my dealership (not where I purchased the vehicle). After about another 100 miles I parked the car and coolant started coming out of the good. I checked the coolant and there was a considerable amount of oil in the coolant. From what I’ve read this isn’t a great sign. So as far as I’m aware my Forester needs the head gaskets resealed and a new radiator. My question is, should I bother with fixing those parts with OEM replacements or would I be better off starting to build the engine at this point? If anyone has suggestions of good mods it would be much appreciated. If it would be more cost effective to put the OEM parts back on and start with a clean slate I’m open to that as well. Thanks in advance!
 

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Even though the bill of sale said "as-is", you still do have a reasonable expectation of the vehicle working longer than 2 weeks.

It could be headgastkets,it could be a bad turbo, but it could also be that the block is cracked.

I would contact the dealer where you bought it from and explain the issue.

I'm not a lawyer, do some investigating, but I would demand my money back.
 

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2018 X3 M40i / 2016 X3 xDrive35i
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At 120k miles there's a lot of history that is unknown. Headgaskets in the turbo EJ is not particularly common at that mileage like it is with the NA engines so it's hard to say if this is a head gasket for sure and if it's advisable to keep everything else in place while just addressing head gaskets.

I may be more inclined to believe the car may have suffered an overheat event that warped the head shortly before it was sold.

Look up your state laws with regards to "as-is" sales. In my state (ks) there is no allowable "as-is" sale....everything applies to "implied warranty" which is a little vague but could give you a legal argument if your state has a similar expectation for the dealership.
 

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Definitely contact the dealer, as the others have said. I had a similar thing happen with a 67 beetle me and my wife purchased about 5 years ago. The motor blew up with just a few weeks of occasional driving. I did buy it from a classic car dealer and they offered to pay for half of an engine/rebuild at my shop (which are cheap anyway). I was ok with that.
 
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