This sounds like a horrible situation. First, call Subaru of America and explain everything you explained here. Although I've never contacted them, I've had to handle situations with dealerships similar to this and corporate was very helpful. Second, was this extended warranty actually from Subaru? Or was it a third party? How did you get the extended warranty? Finally, I am not sure how they will handle the engine if you refuse to pay. I have studied business law and what they can do is have a "mechanic's lien." It basically means they hold your car as collateral until you pay. Worst case scenario they can sell your car for the repairs and pay you the difference. This is extreme and obviously if you are found to be in the right that won't happen.
Subaru denies Extended warranty after replacing engine.
Hello Everyone, I'm currently going thru a crisis and would love everyone's input on this current situation.
I was driving home one evening in my 2012 Subaru STI Hatch and the engine started making a ticking noise as if the engine had no oil, I heard the noise as I entered the drive way to where I live. Unsure of what was going on since my oil was changed a month ago, I just parked the car in front of my house and checked the oil and it was fine. For some reason the engine was making a large ticking noise and I got it towed to subaru the next day.
This is where the crisis occurs. Before I proceed I want everyone to know what modifications I have, which are the following:
1. Cobb Intake
2. Invidia Exhaust
3. Cobb Accessport.
My vehicle arrived at the dealership on May 2nd, 2017. The vehicle was towed via AAA who cracked my front bumper since the vehicle was lowered, I opened up an Allstate claim for that. I had also opened an allstate claim for my engine incase Subaru's extended warranty denied my cause of engine failure. Before Subaru began work on my engine I made it clear to let me know if the engine wasn't covered under warranty so I could take it elsewhere.
Allstate denied the claim stating it wasn't covered under their policy, but they did make a claim to get the front bumper repaired. Subaru began checking my engine for what was going on and they stated the main rod was damaged and I would need an engine replacement. The service manager told me the engine would be covered under Extended warranty.
Subaru began disassembling my engine and on May 16th, 2017 they left a voicemail on my phone, here is the actual text he left:
"Hello this is Subaru. Please give me a call back at this number. We are putting your engine back together and we recommend changing the spark plugs before we put it all back. They are not covered with the warranty repair and that is the only thing you would have to pay, no labor or other charges. The plugs are $65 for all four. Please give me a call to let me know what you want to do so I can continue building your engine. Have a great day bye"
That voicemail is proof that Subaru stated the engine was being covered under warranty repair and I would not have to pay anything. I then went to the physical dealership on May 22nd 2017 to look at my vehicle. At this time, the engine was in and the car was running. They were finishing up a few things and Subaru said the car would be sent to the body shop tomorrow to begin work on the bumper that was damaged.
On Wednesday May 24th, 2017 Subaru called and left a voicemail stating there was a problem with the extended warranty and to please give him a call back. I called him and he stated that there is a new policy where they had to get prior approval beforehand before beginning any work on the engine. He said that a subaru extended warranty representative was going to come and look at the old engine they have removed and see if they would cover the engine. I stated why was this not done before the engine was touched and he said not to worry about it.
One week later on Wednesday May 31st, Subaru calls and leaves a voicemail stating the extended warranty has denied my claim and that it is going to be my responsibility to pay for the new engine and it would be $5700. The reason he stated they declined the repair was due to my engine modifications.
So here is the issue, Subaru ALREADY placed a new engine in my vehicle and removed the old one when they thought the warranty would cover it. They are now saying the warranty DOESN"T cover it and telling me to pay $5700. I never approved my engine to be changed nor was I ever asked. Under normal circumstances the first step should be for Subaru to see if the warranty will cover my engine BEFORE touching my car. In this case they "thought" the warranty covered it and already tore my old engine out and put a new one. My insurance hasn't been able to work on my bumper since they are holding my vehicle and now I'm paying a rental out of my pocket.
I wanted to get some assistance from my fellow members before I get an attorney involved. Subaru had NO RIGHT to tear my engine apart prior to getting the work authorized and that is NOT MY FAULT at all. That is their fault. I don't understand whats going to happen. Assuming I tell them I'm not paying then what are they going to do? Are they going to rip the new engine out and place my old engine back in and rebuild it? How do I know they aren't going to damage the engine and sabotage me more? This is a really bad situation and any feedback will be greatly appreciated. :grumpy:
Thank you so much in advance.
I was driving home one evening in my 2012 Subaru STI Hatch and the engine started making a ticking noise as if the engine had no oil, I heard the noise as I entered the drive way to where I live. Unsure of what was going on since my oil was changed a month ago, I just parked the car in front of my house and checked the oil and it was fine. For some reason the engine was making a large ticking noise and I got it towed to subaru the next day.
This is where the crisis occurs. Before I proceed I want everyone to know what modifications I have, which are the following:
1. Cobb Intake
2. Invidia Exhaust
3. Cobb Accessport.
My vehicle arrived at the dealership on May 2nd, 2017. The vehicle was towed via AAA who cracked my front bumper since the vehicle was lowered, I opened up an Allstate claim for that. I had also opened an allstate claim for my engine incase Subaru's extended warranty denied my cause of engine failure. Before Subaru began work on my engine I made it clear to let me know if the engine wasn't covered under warranty so I could take it elsewhere.
Allstate denied the claim stating it wasn't covered under their policy, but they did make a claim to get the front bumper repaired. Subaru began checking my engine for what was going on and they stated the main rod was damaged and I would need an engine replacement. The service manager told me the engine would be covered under Extended warranty.
Subaru began disassembling my engine and on May 16th, 2017 they left a voicemail on my phone, here is the actual text he left:
"Hello this is Subaru. Please give me a call back at this number. We are putting your engine back together and we recommend changing the spark plugs before we put it all back. They are not covered with the warranty repair and that is the only thing you would have to pay, no labor or other charges. The plugs are $65 for all four. Please give me a call to let me know what you want to do so I can continue building your engine. Have a great day bye"
That voicemail is proof that Subaru stated the engine was being covered under warranty repair and I would not have to pay anything. I then went to the physical dealership on May 22nd 2017 to look at my vehicle. At this time, the engine was in and the car was running. They were finishing up a few things and Subaru said the car would be sent to the body shop tomorrow to begin work on the bumper that was damaged.
On Wednesday May 24th, 2017 Subaru called and left a voicemail stating there was a problem with the extended warranty and to please give him a call back. I called him and he stated that there is a new policy where they had to get prior approval beforehand before beginning any work on the engine. He said that a subaru extended warranty representative was going to come and look at the old engine they have removed and see if they would cover the engine. I stated why was this not done before the engine was touched and he said not to worry about it.
One week later on Wednesday May 31st, Subaru calls and leaves a voicemail stating the extended warranty has denied my claim and that it is going to be my responsibility to pay for the new engine and it would be $5700. The reason he stated they declined the repair was due to my engine modifications.
So here is the issue, Subaru ALREADY placed a new engine in my vehicle and removed the old one when they thought the warranty would cover it. They are now saying the warranty DOESN"T cover it and telling me to pay $5700. I never approved my engine to be changed nor was I ever asked. Under normal circumstances the first step should be for Subaru to see if the warranty will cover my engine BEFORE touching my car. In this case they "thought" the warranty covered it and already tore my old engine out and put a new one. My insurance hasn't been able to work on my bumper since they are holding my vehicle and now I'm paying a rental out of my pocket.
I wanted to get some assistance from my fellow members before I get an attorney involved. Subaru had NO RIGHT to tear my engine apart prior to getting the work authorized and that is NOT MY FAULT at all. That is their fault. I don't understand whats going to happen. Assuming I tell them I'm not paying then what are they going to do? Are they going to rip the new engine out and place my old engine back in and rebuild it? How do I know they aren't going to damage the engine and sabotage me more? This is a really bad situation and any feedback will be greatly appreciated. :grumpy:
Thank you so much in advance.
1 - 20 of 32 Posts
I will give them a call. This was an extended warranty from Subaru when I purchased the car from them brand new.This sounds like a horrible situation. First, call Subaru of America and explain everything you explained here. Although I've never contacted them, I've had to handle situations with dealerships similar to this and corporate was very helpful. Second, was this extended warranty actually from Subaru? Or was it a third party? How did you get the extended warranty? Finally, I am not sure how they will handle the engine if you refuse to pay. I have studied business law and what they can do is have a "mechanic's lien." It basically means they hold your car as collateral until you pay. Worst case scenario they can sell your car for the repairs and pay you the difference. This is extreme and obviously if you are found to be in the right that won't happen.
Yeah call SOA asap. Either way, I think the dealer was wrong to even start the repairs without even clarifying if it was covered by warranty. Stress you have proof. Seeing as how you even bought the car brand new, I imagine SOA will side without....if they don't it will reflect horribly on them. Even if the motor is rightfully not covered by the warranty, the dealer messed up big time.
I'd work my way up the dealership chain first; service manager, warranty manager/sales manager, dealership owner. It would just be the courteous thing to do. But then, certainly the next step is calling SOA. There are other things you can do before just paying for the whole thing, but try this first.
I believe this may be the dealership's fault. It wouldn't be common practice for an OEM to approve work, review the failure again and then deny it. Sounds like the dealership may have just assumed it would be covered and did the work without verifying. I could be wrong, but if this is the case they would be responsible for any monies owed due to their oversight.
Like others suggested, I would contact SOA and ask them if they approved the initial work order for the engine. I would also ask them to verify what was communicated between the dealership and SOA between the time you brought your car in and the work began.
Very messy situation but I would definitely try getting this resolved on your own before involving an attorney. Sucks paying out of pocket for a rental so make sure you track that expense and let SOA know you would like them (or the dealership) to reimburse you for that as well.
Like others suggested, I would contact SOA and ask them if they approved the initial work order for the engine. I would also ask them to verify what was communicated between the dealership and SOA between the time you brought your car in and the work began.
Very messy situation but I would definitely try getting this resolved on your own before involving an attorney. Sucks paying out of pocket for a rental so make sure you track that expense and let SOA know you would like them (or the dealership) to reimburse you for that as well.
SOA has every right to deny the warranty coverage due to the aftermarket parts, but the way that this was handled is very poor on the dealership's part.
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SOA has every right to deny the warranty coverage due to the aftermarket parts, but the way that this was handled is very poor on the dealership's part.
I agree.. the moment SOA denied coverage the mistake was put squarely on the dealership. They did the work, SOA isn't going to pay them, so they should foot the bill. It's the dealership's mistake, and a costly one.. but it's not like the dealership can't afford a $5700 slip up. If they've been in business for more than a year I'm sure they've had to deal with more expensive blunders than this.
I would even go one step further and state that what the dealership did was illegal. That is, if what OP claims is correct in that they made the repairs without authorization from OP, as the owner.SOA has every right to deny the warranty coverage due to the aftermarket parts, but the way that this was handled is very poor on the dealership's part.
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I see zero problems here.
1. The car has been modified with imitation parts. Since the parts are fake, Subaru is under no obligation to repair the car.
2. Subaru should not have proceeded with repairs without authorization from anyone at all -- not their own mechanism, not the owner.
Simple solution: Call the dealer, tell them to replace the engine they installed with your original engine, and you'll be by to pick the car up with a flatbed. You'll handle the repairs yourself and/or elsewhere, and you won't charge them for anything at all, not even the flatbed.
1. The car has been modified with imitation parts. Since the parts are fake, Subaru is under no obligation to repair the car.
2. Subaru should not have proceeded with repairs without authorization from anyone at all -- not their own mechanism, not the owner.
Simple solution: Call the dealer, tell them to replace the engine they installed with your original engine, and you'll be by to pick the car up with a flatbed. You'll handle the repairs yourself and/or elsewhere, and you won't charge them for anything at all, not even the flatbed.
I see zero problems here.
1. The car has been modified with imitation parts. Since the parts are fake, Subaru is under no obligation to repair the car.
2. Subaru should not have proceeded with repairs without authorization from anyone at all -- not their own mechanism, not the owner.
Simple solution: Call the dealer, tell them to replace the engine they installed with your original engine, and you'll be by to pick the car up with a flatbed. You'll handle the repairs yourself and/or elsewhere, and you won't charge them for anything at all, not even the flatbed.
Thank you Everyone for taking your time out to reply. I'm going to head to the dealership and give them one chance to correct this situation before moving forward. I will keep everyone posted.
You should pay attention to SD_GR's solution. The dealership (which has already performed the work) will accumulate significant cost by replacing the original engine back in the car. As a business, they will most likely cut their losses and not charge you for the motor. If not, at least you will be in control of the situation moving forward.
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LOL. I have myself, wanted in the past, an "SD_GR interpreter!"
Exactly, this is what I was alluding to when I said there are other things you can do if SOA indeed denies the warranty. Dealer would likely eat the cost of the new engine or at least bargain with you for partial payment as either one should be preferable to a court battle for them.You should pay attention to SD_GR's solution. The dealership (which has already performed the work) will accumulate significant cost by replacing the original engine back in the car. As a business, they will most likely cut their losses and not charge you for the motor. If not, at least you will be in control of the situation moving forward.
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Me too!LOL. I have myself, wanted in the past, an "SD_GR interpreter
I cannot lie, the best course of action would be to start with the dealer, if they wont budge, then SOA, finally last resort would be to lawyer up and fight for your engine plus the cost of your rental which I'm sure is a pretty penny. If you really want to be petty you can also try to get more for your wasted time, frustration, ect. which will help pay you attorneys fees rather than pay out of pocket.
***UPDATE***
So today I visited the dealership to give them a chance to remedy the situation before proceeding. I met with the Service Manager who immediately welcomed me and said we can have a meeting with the Director of Service. This was strange since I gave no inclination that I was coming to visit or speak, I guess they were expecting me. I sat down with the Director of maintenance, whom immediately told me that Subaru has denied my extended warranty and that is why the car isn't being released without payment.
I asked him if he knew exactly what happened and the Service manager immediately began speaking stating he had forwarded him an email that I had sent him pretty much outlining all the occurrences that happened as I had in my initial post on this forum. I don't think the Director knew that I had that voicemail saved in my phone and he was shocked when he read all those details and he immediately went into an apologetic stage and begin stating how this was the dealerships fault and there should have been no work done on my vehicle without a prior approval from us. I was shocked when he openly admitted that. He began stating how there are procedures which should be followed and they weren't.
I told him I understand the situation however I just want my vehicle back in working order and he told me to call SOA and tell them what happened in detail and they will immediately begin to remedy the situation as this was the dealerships fault. I told him I didn't want to go that route first without speaking to them as I didn't want to throw them under the bus just yet. He stated how it's impossible for him to appeal this as he doesn't have any say but as a customer and car owner of the vehicle that was improperly worked on, I have the authority to call and force them to return my vehicle. (Sounds weird but makes sense in a way).
I then told him how I have to pay for my rental out of pocket. He told me that the bumper claim was independent and not their problem (My Allstate insurance only covers 30 days of rentals and it was past 30 days). I told him the reason it is your problem is because you've been holding my car in a parking lot and preventing it from being sent to the body shop 300 feet away to have the bumper replaced. He immediately looked to the service manager and asked him why the vehicle wasn't sent to the body shop and the service manager stated because the engine work wasn't paid for.
At this point the Director was furious at this situation and he said "shame on us for letting this happen" and he told me to go return that rental, he will pay for anything I paid towards the rental and he gave me a loaner Subaru Outback to drive until this situation is resolved. I feel as though the Director did the right thing and he's trying to remedy this situation, I am happy the way this is now being handled. I am going to be giving SOA a call soon to explain the situation as they were closed today. I will continually update everyone and once again, thanks for everyones advice and support on this weird journey I'm on to just get my damn car back in working order.
So today I visited the dealership to give them a chance to remedy the situation before proceeding. I met with the Service Manager who immediately welcomed me and said we can have a meeting with the Director of Service. This was strange since I gave no inclination that I was coming to visit or speak, I guess they were expecting me. I sat down with the Director of maintenance, whom immediately told me that Subaru has denied my extended warranty and that is why the car isn't being released without payment.
I asked him if he knew exactly what happened and the Service manager immediately began speaking stating he had forwarded him an email that I had sent him pretty much outlining all the occurrences that happened as I had in my initial post on this forum. I don't think the Director knew that I had that voicemail saved in my phone and he was shocked when he read all those details and he immediately went into an apologetic stage and begin stating how this was the dealerships fault and there should have been no work done on my vehicle without a prior approval from us. I was shocked when he openly admitted that. He began stating how there are procedures which should be followed and they weren't.
I told him I understand the situation however I just want my vehicle back in working order and he told me to call SOA and tell them what happened in detail and they will immediately begin to remedy the situation as this was the dealerships fault. I told him I didn't want to go that route first without speaking to them as I didn't want to throw them under the bus just yet. He stated how it's impossible for him to appeal this as he doesn't have any say but as a customer and car owner of the vehicle that was improperly worked on, I have the authority to call and force them to return my vehicle. (Sounds weird but makes sense in a way).
I then told him how I have to pay for my rental out of pocket. He told me that the bumper claim was independent and not their problem (My Allstate insurance only covers 30 days of rentals and it was past 30 days). I told him the reason it is your problem is because you've been holding my car in a parking lot and preventing it from being sent to the body shop 300 feet away to have the bumper replaced. He immediately looked to the service manager and asked him why the vehicle wasn't sent to the body shop and the service manager stated because the engine work wasn't paid for.
At this point the Director was furious at this situation and he said "shame on us for letting this happen" and he told me to go return that rental, he will pay for anything I paid towards the rental and he gave me a loaner Subaru Outback to drive until this situation is resolved. I feel as though the Director did the right thing and he's trying to remedy this situation, I am happy the way this is now being handled. I am going to be giving SOA a call soon to explain the situation as they were closed today. I will continually update everyone and once again, thanks for everyones advice and support on this weird journey I'm on to just get my damn car back in working order.
Sounds like they know they screwed up and are trying to remedy it. Which is good for you. Hope it all works out for you.
Sounds like a stand up dealer if they get this taken care of. The loaner is a good sign.
You might get lucky and get a free engine replacement. Subaru owes you nothing. It is the dealership that might feel obligated to honor their error. If I was them I would say "we'll put your bad motor back in free of charge, but you're on your own after that".
1 - 20 of 32 Posts
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