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Extended Warranty wanting to install high mileage engine

My oil pump went out and has caused more damage internally. Warranty has approved the damages, and verified that I have taken well care of my engine based on all my service records. The issue is, the extended warranty (AGWS) has approved an engine that they will send the dealer to install, that has 155k miles on it. They do not know the service record history on it (this is the key I believe).

Now my contract states “new, like new, or in similar condition before failure”.

They have no service records of the history of the engine they are wanting to send the dealer. They don’t know anything about the motor. And will warranty it for “catastrophic failure” only for 90 days.

Since they have no service records on their engine they want to send, I would assume that doesn’t not qualify as “similar condition before failure” as they do not know the actual internal conditions as they do not have service records. Should i fight them on this motor they want to give me? They offered 3 other options, that would cost me out of pocket. 108k motor for $600. 81k motor for $1200. Ford reman’d motor for $3000. My contract has a $$ limit of $10,000 for the life of the motor. I have about $9200 left to use. My warranty expires in 1200 miles. So I think they are just trying to get by as cheap as possible. Shocker.

My truck does have higher mileage (184k). But it has been well taken care of, and serviced regularly with all paperwork to follow its life.

2011 Ford F-150 5.0 motor.

You have an issue that can be best dealt with by a lawyer. I would personally run away from the engine they are trying to give you. This is a classic example of most extended warranties not being worth the paper they are printed on.

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Kind of what I’m thinking. Need a motor regardless. Just don’t feel like paying 3k for a new motor on such a high mileage truck.

Maybe see what you can get selling it with a bad engine?

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Take the 155K engine, drive it home, sell it ASAP.

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I’m thinking of trading it in, and take the “$0 out of pocket” motor. Let warranty eat some cost. Just figured if I can make them pay for a brand new reman’d motor. I will, and keep the truck.

No matter what else the OP does, I really hope that he resolves to never again buy an aftermarket extended warranty.

The only extended warranties that should ever be considered are those that are offered by the vehicle manufacturer. The aftermarket variety are little more than scams.

I am going to go against the grain here. Although extended warranties and service plans are frequently badmouthed here on this site, and although I have advised people many times to avoid them, it appears that AGWS is honoring its contract and treating you fairly.

By your own admission, the contract states that parts used shall be “new, like new, or in similar condition before failure”. This, of course, depends on the nature of the part in question. For an engine replacement, you are entitled to a running used engine with similar mileage to what your vehicle had. By your own admission, your truck is very used, with a whopping 184,000 miles on it! While I would not want a junkyard engine with 155,000 miles on it, there is no reason to believe that this option is any worse than what you had before.

Assuming, for the sake of argument, that this type of engine is likely to last for about 160,000 miles, the two other options: a 108,000 mile used engine for $600 out-of-pocket or an 81,000 mile used engine for $1200 out-of-pocket are both fair and reasonable. Either option would put you in a better position than you were in before your engine died, and improve the reliability of your truck versus a 184,000 mile example with the original motor.

Personally, I think the option to upgrade to a 108,000 mile used motor for only $600 is a real bargain, and the best deal out of the four options. I would JUMP on that offer, and I would keep the truck once it is repaired. There is no reason to suspect that this motor will not last for many more years and many tens of thousands of miles or more!

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Warranty says new or used? Seems like a wide range there. Your car has 155k miles? And you want new motor? I would too.

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The contract states “new, like new, or in similar condition…”, That’s the rub. You’re not going to get a new engine or even a like new one more than likely.

Just from my personal experience over the decades I’ve found that roughly 30 to 40% of salvage yard units (engines, transmissions, rear axles) have problems to one degree or the other. That’s pretty poor gambling odds in my opinion. I would be very antsy about a 155k miles engine given today’s climate of extended and quite often ignored maintenance by the vehicle owners.

If I were in your shoes I would probably take a chance on the 108k miles engine for 600 bucks. Drive it for a while and if it turns out fine you’re in good shape. If it turns out to be problematic then trade it or sell it private party.
The problem I don’t like with private party sales is the seller possibly lying about a known problem to a buyer and leaving them holding the bag,.I am NOT saying you would do this; only that it puts the seller into the same realm as a shady stereotypical car dealer lying about a problem car he has for sale.

You will seldom ever find service records available unless you buy a car from the original owner who has maintained it well and kept a log which they are willing to turn over. Even car dealers remove these from used cars they take in trade or buy outright.

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I’m all for not getting a NEW or LIKE NEW engine. But I think something under 100k would be more reasonable. Especially since they force me to prove my service records, but then continue to tell me that the motor they want to give me they can’t prove it was taken care of at all. For all I know this motor will be the same issue.

Two different issues. You had to prove the original engine failure was not due to negligence on your part. You passed that hurdle. Now you are getting a replacement with similar mileage. That’s about all that can be done to ensure you’re made whole by the terms of the contract. And frankly, no one has the detail you want on just about any used engine. So how do you get best deal possible? If it were me, I’d ask them to warranty the replacement until your contract expires, just like the original engine. Then you don’t have to worry the replacement history is worse than what you were originally covered by the warranty contract. Not asking for anything extra, just put me back where I was before the failure- coverage wise.

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I can see that. Bad part is, warranty contract expires in 1200 miles :/.

For me, the original offer of 90 days would be a better deal then. lol.

Unless you are willing to waste a lot of money on an Attorney that will result in the same thing you have offered just let them put this back on the road. Drive the thing for a while and then decide to keep or trade.
The longer you drag this out night cause them to be less willing to solve future problems.

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ask Them to provide proof of used motor costs. 155k motor is $1500. 108k motor is $2100? Prove it. They are probably yanking ur chain. What if you can find a lower miles used motor for less than $1500? Have the warranty co pay for that.

The warranty company is not going to pay anything for an individual sourced engine. Also the warranty company holds all the winning cards .

You have a high mileage 9 year old truck. What about the other parts like the transmission? You are almost at 200,000 miles.
Suppose you didn’t have the extended warranty. What would you do? Would you put a new or used engine in the truck or sell it for parts?
My suggestion is to either have the 155,000 mile engine installed and think about trading the truck or spend the $600 extra for the 108,000 mile engine and hope to make it to 200,000 miles.

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We are thinking of just doing the 155k…and trade in. Dealer is offering almost 10k trade in value with replacement motor. Which is acceptable to me :slight_smile:

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Daddy’s new truck :). They are dealing with the engine now.

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