2005 Volvo XC90 Check engine light on

We don't have a listing for that code so it would help if you can include the description. I doubt serious damage was done in 9,500 miles but turbocharged engines are a lot more picky about quality, clean oil.

In the '80s, while working at a mass merchandiser, a fellow came in with a Dodge Dart with the slant six cylinder engine. We had to work to get about three drops of oil out of it when we tried to drain it. It was totally empty, but since those engines had solid lifters, it was perfectly quiet, and seemed to run fine after the oil change. Another lady came in with a Plymouth Horizon with 90,000 miles, and she claimed the oil had never been changed since she bought the car new. No one ever told her the oil needed to be changed regularly! Another person, an elderly gentleman, got viciously angry when we tried to convince him the oil needed to be changed regularly on his Cadillac. He accused us of trying to sell him something that wasn't needed!

To add to the stupidity, I haven't changed the oil in my '88 Grand Caravan in over 12 years, 150,000 miles. It leaks enough from the oil pressure sending unit that I have to add a quart about every 1,000 miles, so it gets the additives replenished regularly. Obviously I'm not suggesting anyone else abuse their engine like this, but I did it to show my students what some engines are capable of. Just put another 150 miles on it today. There's over 415,000 miles on it so I guess it doesn't pay to change how I take care of it now.

The point is, after seeing all of this, I'm skeptical you need a new engine. I'd want to hear a lot more details of why they think that or what problem has been caused.

I have to disagree with your mechanic. Oil level and pressure are not monitored by the Engine Computer. There are well over a thousand potential diagnostic fault codes for the things that computer DOES monitor, and when the Check Engine light turns on it means the code it set is related to something that could adversely affect emissions. About half of that list of fault codes will not affect emissions and will not turn the light on.

If you have a problem with low oil pressure, that will turn on the "Oil" warning light. Seal leakage is not caused by failure to change the oil regularly. At the mileage you listed those should be handled under warranty. Turbochargers do need high-quality, clean oil, but to predict an early failure so soon is irresponsible. If this dealer is trying to avoid doing work under warranty or to make you pay for things that should be under warranty, I'd get a second opinion from a different dealer.

I'm seeing things differently now. You listed the mileage as 9,500. I suspect I glanced at a banner ad for a 2014 model and took that to mean this is an almost-new car. Sorry for my confusion. The fact remains that oil level and pressure won't set a diagnostic fault code. You likely still have some friends in the business. I'd approach them with the details and try to get a second opinion. I'm not against dealerships. In fact, often they're the place for the fastest and less-expensive repairs, but with all the costs you listed it would be less expensive to put a used engine in it.