2005 Mountaineer: Blown engine. Advice needed.

[LedZeppelin]

On Friday, Feb 11 I got halfway down the street when my Mountaineer (just turned 100K miles) died right in the middle of the road. After having it towed to the Ford dealer, they got back to me on Monday and told me that there was no compression in cylinders 1 and 2, and that the engine would need to be replaced. When buying the vehicle, I was sold an aftermarket warranty from "The Warranty Group", and of course the salesman told me that should something happen, everything would be replaced with new products.

After going back and forth with this warranty company for the better part of 10 days now, they came back today with this option: They will replace my engine with a "LKQ" engine that supposedly has 40,000 miles on it. My dealer advised me against this, saying LKQ engines are from junkyards. This engine would come with a 1yr/10,000 mile warranty. Of course, this engine is only costing the warranty company $2,150.00, which is their cheapest option.

The Ford dealer has a new Ford engine that they quoted the warranty company $3,422.21. I fought with the warranty company all day long today that this is what I wanted, and is obviously the best option, but since they only have their cost in mind, and not the customers best interest, they would not budge. They gave me the option of paying the difference out of my own pocket if I wanted the new Ford engine the dealer is recommending.

I still owe close to $9,000 on this vehicle, and am scared of putting this unknown "LKQ" engine in my vehicle. But basically this warranty company is holding me hostage unless I come up with close to $1,500 on my own for the better parts. And to top it off, they said the only thing they would pay for besides the engine and labor is the engine oil, no spark plugs, no nothing.

I really would like to get the advice of a lawyer, but I can't continue to pay for a rental out of my own pocket, as well as my regular car payment, insurance, etc.

What would you guys do? Sorry for the long read, I'm just at my wits end here and unbelievably stressed and frustrated.

 

[sport97]

That's how those aftermarket warranties work. Lots of fine print, and there will be no way to fight it, use the lawyer $ on the new engine.

I don't know what LKQ stands for but you said its a junkyard engine. Most likely nothing wrong with it. We took this route with a car once and it was fine. I would venture to say you should be alright with this option, and it may be the only thing you can do.

But....If the dealer is going to install a brand new engine for 3500 labor included(you didn't specify if it was) I would try and do that because the warrenty company said they would put 2000 towards that. That gives you peace of mind and a brand new engine as you obviously plan to keep the car a while.

If labor isn't included in that 3500, then I would go with the junkyard engine because the dealer will over charge for labor, and just get on with your life. The labor is included for the junkyard one, but they may hit you with a few odds and ends like spark plugs and such.

 

[LedZeppelin]

That's how those aftermarket warranties work. Lots of fine print, and there will be no way to fight it, use the lawyer $ on the new engine.

I don't know what LKQ stands for but you said its a junkyard engine. Most likely nothing wrong with it. We took this route with a car once and it was fine. I would venture to say you should be alright with this option, and it may be the only thing you can do.

But....If the dealer is going to install a brand new engine for 3500 labor included(you didn't specify if it was) I would try and do that because the warrenty company said they would put 2000 towards that. That gives you peace of mind and a brand new engine as you obviously plan to keep the car a while.

If labor isn't included in that 3500, then I would go with the junkyard engine because the dealer will over charge for labor, and just get on with your life. The labor is included for the junkyard one, but they may hit you with a few odds and ends like spark plugs and such.

Whenever I called this warranty company, I speak to a different person every time, it's impossible to get the same person that originally gave all the info. But from what the last person told me, they would pay for the labor, I just have to come up with the difference (about $1400 or so), for the engine the Ford dealer is recommending.

I'm at am impasse. Like I said, I still owe $9K on the vehicle, so I was actually thinking about getting the junkyard engine installed, and then look at possibly trading it in. I really would like to keep the vehicle though, so I don't know.

 

[sport97]

I wouldn't be so scared of the junkyard engine. Chances are it will be ok. Ford will always recommend a new engine in this situation. It makes them more money, and its probably a cleaner/easier install. That's not to say the other option is a terrible choice. We put 30k on our Pontiac with a junkyard engine that the shop found and installed for us, and then we sold the car, it is probably still going. If you do plan to sell it I wouldn't get rid of it for any less than you owe on it. Not worth taking a loss in my opinion.

What shop would do the junkyard engine install for you? The dealer, or their shop?

 

[LedZeppelin]

I wouldn't be so scared of the junkyard engine. Chances are it will be ok. We put 30k on our Pontiac with a junkyard engine that the shop found and installed for us, and then we sold the car, it is probably still going. If you do plan to sell it I wouldn't get rid of it for any less than you owe on it. Not worth taking a loss in my opinion.

What shop would do the junkyard engine install for you? The dealer, or their shop?

Yeah, the Ford dealer where I've had all my service done.

I think you're right. At least there is a warranty that comes with the engine should anything go wrong.

 

[sport97]

Yeah, the Ford dealer where I've had all my service done.

I think you're right. At least there is a warranty that comes with the engine should anything go wrong.

So at least you can mostly trust the shop. If you are in a pinch for $ you can have them reuse the plugs and wires, but if there is anything like that you want changed you should buy it and give it to them. They might just throw it on there without charging extra labor as it needed put on anyway, worth an ask.

 

[safn1949]

I hope it works out for you,lesson here is read the contract you signed with the warranty company.There are always exclusions and biggest point I can make is no car payments.......I never borrow money for cars and this is exactly why.I have been buried in car payments twice when I lost my job.Lots of fun and will never happen again.

I'm not trying to be a dick here,I feel for you dude.Fix it and get rid of it.Buy a beater and save the money to buy a decent car in 6 months cash.

 

[CDW6212R]

Go over the original agreement you signed. Check it to see which engine options are in that, even if you need help from an expert to read the agreement.

If the options are just as you indicated, get the new engine. I'd bet that any decent search through the used engines available, either LKQ or all the others, $1000 is about the most I'd ever pay. That used price you listed is ridiculous, that's a ripoff price and likely a source of money for that warantee company. They wouldn't be paying that, if they were good businessmen.

Don't pay that kind of high price for a used engine, warranted or not. The new engine price isn't bad, if it is completely new. Good luck,

 

[chitown1211]

Eventhough they are screwing you over, getting a 100% new engine for only $1400 out of pocket isn't too bad. I assume you have some sort of deductable so you probably would be coming out of pocket for something anyway.


LKQ is a reputable company. They are one of the largest salvage yards on the net. I have bought from them before with no problems.


That being said the price does seem high. I would call LKQ myself and get a quote just to see what the warranty company is up to. I assume that high cost might also include shipping.

I would also ask the warranty company if you could shop for your own used engine. I am positive you could find a better deal AND find one with some sort of known history.

 

[CDW6212R]

The only good that could come from shopping around for a cheaper used engine would be to save that company money. I would only do that if I could get the $2150 and buy my own used engine.

For warantee purposes, it's all about them and the deductible. You want to minimize your costs, not theirs. I'm not anti-business, I understand that they know what they are doing. They should have partnerships with companies like LKQ, and they probably will not let you know how little they pay for their parts.

A used engine is a used engine, it's about the previous owner and how it was cared for. The new owner, a parts business, LKQ etc, they don't have anything to do with the likelihood of an engine lasting. In a salvage yard, it's a crap shoot whether you end up with a good part or not.