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In short, I bought pristine 2008 spec B and the engine died < 300 miles after owning it (rod bearing failure). The dealership gave me the option of returning it to them and they refund funds in full. Or option two for them to tow it to their facility and they diagnose it then decide on whether it’s worth it or not to repair. Sounds like the just want to be rid of it all in some way. Their concern at the moment the engine rebuild quotes I received is about 60%+ the cost of what I paid for the car. My heartburn is the warranty states 100% parts and labor is covered. Thoughts or suggestions?
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This is a tough one. I say if they are willing to refund the car, to take the money and run.

 

I'm guessing if they repair it they will nickel and dime you trying to say that certain things aren't covered. They will most likely not replace everything that should be replaced as well.

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Depending on how bad the blown engine is (if it spun the bearing and you didn't drive it a bunch, etc.), rebuilding the engine (new shortblock, etc.) would be like a clean reset, in some respects - if they skimp, though, it could be a ticking timebomb. I would think you could do some short oil change intervals and really inspect the oil to look for debris to see if there is anything left in there...
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