On my way to work last night lost all oil pressure then engine shut off.

 

Also for a little history I bought this xj several years ago it had ALOT of sludge build up in engine that I cleaned with Marvels & Seafoam along with multiple oil changes Rotella T 15w40 & Napa Gold filters, oil pressure cold 45lbs.

 

It's my understanding that the oil pump does not create the oil pressure but rather the condition of the bearings within the engine. It sounds like these bearings might be shot, thus the reason the mechanic saying you need a new engine.

Also, are you familiar with the 0331 head on 00-01 XJs? This might have factored in to the equation.

Anyways, this is a crappy situation. Your best bet, if you need a new engine, is to get a used engine or buy another XJ.

 

Sorry to hear. I just bought a jeep and last I checked you could get a rebuilt engine for around $1300-1400.
Or is that the engine and install at $2100?

 

"Without even looking at it, mechanic told me I needed a new engine".

This is obviously never a valid diagnosis. There are some tests that can lead to the conclusion of needing a new engine pretty quickly (usually related to compression). However, even those need to be double checked with other tests to be conclusive because a jumped timing chain, and/or stuck valves, for example can also lead to weird compression problems.

Feel free to empty every pocket, but to be talking about replacing the engine at this point is premature. You need a real diagnosis before you get to that discussion.

A good mechanic will tell you how he reached that conclusion.