Subject: Mitsubishi Engine
Question: I own a 2000 Mitsubishi Mirage, which has approximately 20,000 miles on it. There have been no problems with the car, no repairs, I haven't even changed the first brakes as yet. I get an oil change every 3,000 miles. Apparently Thursday night I hit something in the road which caused an oil leak. I then drove the car home after the oil light came on. As I drove into my driveway the car died. I had it towed to the dealer where then told me that the motor had seized. I have no idea what I hit, I didn't feel anything nor hear anything. But the mechanic at the mitsubishi dealer says there is a scrape on my oil pan and 2 holes in it. I would have felt something if I did hit something in the road. Anyway now I have a fairly new car with a useless engine it seems. Please tell me how much a new or rebuilt engine should cost me.
The car is still under the factory warranty (up to 36,000 miles). The service dept tells me that this problem is not covered under the warranty and that to have a new engine put in it will cost me approx $5,000.00 and a rebuilt one approx $2,500. I need some help. This doesn't seem reasonable to me. Why can't the warranty cover at least some part of this? What do you think and is there any other association that I can contact? I feel like I'm being ripped off.
Answer:

Everlyn,
Many times, unfortunately, dealerships will try to rip you off. Whether it's on a very simple part or on major repair work. But it looks like in your case, they may be giving you the straight deal.
Because you drove home with the oil light on (basically knowing there was a problem), your warranty probably would not cover your seized engine. And a seized engine is probably what you have if you drive it with no oil. If you were able to have the car towed as soon as you realized there was a problem, (1) you wouldn't have a seized engine, and (2) your warranty or insurance would cover the repairs. Debris in the road is covered by most comprehensive insurance policies as standard. You can have a lawyer look over your warranty to see if that dealership is trying get out of honoring it. Those warranties are written by lawyers and usually only they can truly understand them. If a lawyer says your warranty will cover the costs, you can bring the dealership to court and try to fight your case. You can also contact the Better Business Bureau.

If you suspect the dealership is ripping you off, first have someone else check out that oil pan they said is scraped and has 2 holes in it. In most cases, you would have felt and/or heard something big enough to put holes in your oil pan. Those pans are made from extra heavy duty steel or even fiberglass nowadays. It could be possible that the oil pan was scraped days or even months ago, and over time slowly woreaway. Rust could have formed from the scrapes and slowly ate through the pan. If THAT was the case, whom ever changes your oil should have notified you about the problem.

As for the prices the dealership quoted you, they sound legitimate; unfortunately. Because you have a car that is relatively new, they will first opt to put a new engine in it. Indeed it can cost about $5000. The rebuilt engine for $2500 sounds like a very reasonable price. A rebuilt engine can run just as good as a new engine. For all intents and purposes, a rebuilt engine is new. You can shop around for a better price on a rebuilt, but the quote the dealership gave you does sound legitimate. They will make even more money when they charge you for labor of installing it. If you are able to find a rebuilt engine elsewhere and have qualified mechanic install it for you, you'll probably save several hundred dollars. Dealerships usually charge about $75/hour for service repairs; local garage mechanics usually charge between $50-$65/hour. It could take anywhere from 4 - 8 hours to install an engine; depending on the mechanic performing the install and the tools they have available.

I hope I was able to be of some assitance. Good luck!
Anthony