CarComplaints.com Notes: The 2005-2007 Xterra appears to have a widespread defect where coolant leaks into the transmission, causing transmission failure around 90,000 miles. Repair costs are typically upwards of $3,500.
The same defect exists in the Pathfinder & Frontier as well. And according to the New York Times & a class action lawsuit, the defect actually extends through 2010 model year. More info here.
Known problem with this year's vehicle but used car dealer sold it anyway and did nothing but offered to look it over and fix it, adding the cost of repairs to the sales cost... We drained and flushed the radiator and replaced the coolant. There were no over-heating problems and was able to clean the majority of the goop out of the radiator. All this was before we found out that this has been a known problem since 2005. The radiator will need to be replaced to correct the manufacturer's known defect and the manufacturer will do absolutely nothing, the car is too old... Yeah...
A D V E R T I S E M E N T S
Known problem with this year's vehicle but used car dealer sold it anyway and did nothing but offered to look it over and fix it, adding the cost of repairs to the sales cost... We drained and flushed the radiator and replaced the coolant. There were no over-heating problems and was able to clean the majority of the goop out of the radiator. All this was before we found out that this has been a known problem since 2005. The radiator will need to be replaced to correct the manufacturer's known defect and the manufacturer will do absolutely nothing, the car is too old... Yeah...
- David W., Archer, FL, US