New engine replacement approved but dealer wants $700-$900?

Has anyone heard of this experience where a dealership is asking for payment on the extended engine warranty ?

Here is our situation. We have a 2012 Sonata. original owners, at around 118k miles the dreaded oil consumption issue hit (the oil light came on after driving less than 3k miles after the last oil change) . The dealership said we had to get an oil change and bring the car back every 1,000 miles to check consumption. We finally had the last check done a few weeks ago (covid really slowed our driving habits) and we are now over the 120,000 (122,143 to be exact) . So we got word yesterday the engine can be replaced under the extended warranty but the dealership says we need to pay between $700-$900 and we have to let them know within 10 days. Why are they asking us to pay that, yes its a great deal considering its a new engine…but are they allowed to do this? Is it because we are now over the 120K, some kind of proration?

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The average cost for replacing a car engine can range from $1,500 to $7,500, with labor costs alone ranging from $1,200 to $2,200.

Factors such as engine size, type, and additional parts needed can significantly affect the total cost.

If the dealer is offering a complete engine replacement service for $700, it’s likely a good deal, especially if it includes the cost of the engine itself.

However, it’s always wise to get a detailed breakdown of the costs and compare quotes from other mechanics to ensure you’re getting the best value for your money.

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It seems a reasonable price comparably.

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Just when you thought your car was high-maintenance, now it wants a $700 spa treatment for its engine.
I mean, I love my car, but I didn’t realize we were in a relationship where I had to buy it expensive gifts.