115K on 2008 CX-7, blown engine, seeking advice

CX-7 RIP

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2008 Mazda CX-7 Touring
It's been a very bad week and I'm hoping this community can give me some advice.

I have a 2008 CX-7 AWD with the 2.3L turbo, about 115K miles on it. On 11/8/14, while driving down the highway, the engine began making a high pitched whine. Didn't sound like a belt, didn't sound like anything I've ever heard before, closest thing that I can compare it to is the sound of supercharger. Lifted and it mostly went away, got back on the gas and it came back. We were a few miles from home so I slowed as much as possible and continued. A few minutes later the engine died; it would turn over but not start. Had vehicle towed to local Mazda dealer. After a few days the service manager told me it was a blown turbo and a ruined engine - the engine has no compression on 1 and 4 and almost none on 2 and 3, he believes when the turbo failed it threw shrapnel into the engine, metal into combustion chambers apparently does very bad things (that was sarcasm).

The turbo was replaced at 38K under SSP 87, the VVT and timing chain program, so it had less than 80K on it.
All recommended maintenance was done religiously at a local Mazda dealer since new.

My only option seems to be a new engine, about $8400 through the dealer they tell me, which is not far from the book value of the car. The service manager tried to find a used or re-manufactured engine but says he was not able too, tells me they aren't readily available and he can't find one.

I contacted Mazda Customer Support and their final response after I asked the support rep to escalate the issue (her initial response was that they can't help me) was:
"issue was reviewed at highest level and Mazda has declined to provide any assistance with these repairs".

The car is obviously out of warranty, but I'm very frustrated that a well maintained 6 year old vehicle with 115K miles has a blown engine. Maybe I'm naive but I think that should be unacceptable.

I'm hoping that folks here might have some ideas or suggestions. How much is a 08 CX-7 AWD in very good condition, with a blown engine, worth? Do I have a prayer of selling this thing? Any idea where I might find a re-manufactured engine?

Very frustrating.
 
I feel for you... not sure what to say.

I almost bought a '07 CX-7 new years ago.. the turbo lag at the time made me move on.
 
You would be surprised what a parted out vehicle could net you. The challenge is if you can accommodate the vehicle carcass at your house without the neighbors complaining. If you have acreage that would be a moot point. I once parted out a $300 snowmobile with blown engine for $1500.
 
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I know a shop that knows quite a bit about the 2.3 in your car just east of Pittsburgh. It's the same as the speed3 and speed6. Im sure they could find you a used Motor and slap it in for you cheaper than what mazda would do. If not, I am interested in the car as it sits if you have a ballpark figure on what you want for it. Here is my e-mail if you would like to talk more about it. jhump06 at gmail.com
 
I found a rebuilt engine for cheaper than any used engine I could find. I got it from AAA engine in California. They shipped it to the shop that had my car, and they put it in for about $1700. The engine was about $2700 after the core charge was returned. That was the cheapest solution I could find. They also told me they put an improved timing chain inside the rebuilt engine. The engine is also warrantied for 1 year however, the labor is not.
 
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