my car has a brand new engine but is losing coolant and water when driven checked everything no leaks can be found any ideas

Its going somwhere either the cylinders are burning it or it leakig externally somewhere. It cant just disappear it has to be something.

just got it back from shop they took it apart and checked everything externally and interannally told me they thought it was because it has air in lines from changing the engine but its real hard to get out because everything in the car is sealed on that model also can hear water sometimes when going after a stop

Very well could have air. The shop you took it to should know how to bleed a cooling system.

they said they checked the cylinders and compression and nothing no water they put in under pressure no leaks anywhere

they said they had bled the lines but that car was very hard to bleed

is the resevoir bottle supposed to have coolant in it

Well take it somewhere where they can do it correctly. Air in the system would make it drop some as the air works itsself out. But it should stop after a while after the air is out.

Yes it should have some in it. There should be marks on the jug indicating the level for hot and cold.

thank you i will check that if it doesnt have any in it what does that mean

Its gettin air out and takin coolant in. Keep an eye on it should keep happening out a long period of time. If it keeps dropping you have a problem if not then your good.

thank you

http://www.ehow.com/how_5786274__burp_-toyota-coolant-system.html

Lucky you had enough coolant in it to run it without damaging anything. Learned why you must purge the air out the hard way, but I was 17. Ever since then I fill the engine from the highest accessible point untill it runs out, then top up through the rad.

replace the radiator cap