Cost of repairs under powertrain warranty costs more than value of car, please help

[deejank]

Please bear with my story, I'm not knowledgeable with this situation.

2009 Genesis 4.6, 78K miles, paid off, original owner. 3 weeks ago my car started jerking and the OBD codes read Engine Misfire.

I took it to the dealership where they tried replacing spark plugs and another component that I forget the name of, but did not fix the issue. They then had my car for a week stating that under the powertrain warranty, they were going to replace the oil control valve. That unfortunately did not fix the issue at all. Another week passed as the update came after the dealership spoke with Hyundai Corporate was that it needed a brand new engine. Hmm, that's fine, I had a loaner car at this point, and this was all going to be covered under warranty.

I called today since it has been three weeks and I was looking for an update and the service advisor told me Hyundai Corporate was supposed to call me last week letting me know that this case has been sent to arbitration because the repair job would cost approximately $13K, and my car was worth less than that.

I can't help that as a customer, I am forcibly getting the crappier end of a deal that will most likely offer me less than $10K cash. I am so upset because I will never be able to get a car similar to the Genesis 4.6 for <$10K and I am not willing to make car payments as I'm married and we are saving and planning.

What are my options here? I understand what's going on and arbitration is considered a neutral middleman to try and find an outcome that both parties can be okay with.

Did I just lose my amazing 4.6 Tech Pkg Genny that was paid off?
Will I be forced to accept Hyundai's buy back at resale value (which is very crappy), and get a very shitty car and/or pay car payments, that I really can't do right now?

What are my options here? Anyone knowledgeable about situations like this? How can I come out on top? Any leverage as a customer that took a chance on their brand and bought the first year Genesis?

Please help me out, I don't want to get screwed over or pushed around by not being ready for what's to come with Hyundai Corp/arbitration company.

Thanks so much for reading...

 

[homeofstone]

you are the original owner. You have a 100,000 mile 10 year warranty on the power train of the car. 1. I hope you got a loaner car. I always do. 2. Tell them to fix your car under the warranty. Get your warranty out and read it and point out that Hyundai is to fix the car. 3. Do not accept less than a complete fix of the car. 4. Last if no satisfaction, Get a local T V consumer reporter involved and let them call a VP of Hyundai.

 

[Mark_888]

I would ask Hyundai to provide a copy of the drivetrain warranty terms where it says that they can just reimburse you for the value of your car if the cost of the warranty repair is greater than the current value of the car. They need to prove that you were provided these terms upon purchase of the car.

In looking at the detailed warranty terms for 2015, I don't see any mention of exclusions relating to warranty repairs exceeding the value of the car.
https://www.hyundaiusa.com/assurance/assurance_pdf/2015_warranty/AME-ALL15MY-140513.pdf
You should be able to find the warranty doc for 2009 in your papers or at www.myhyundai.com

You should contact HMA about this and get a case number, since they provide the warranty, not the dealer. The dealer just does the warranty service and gets reimbursed by HMA. The dealer is probably not thrilled about this, because the warranty labor reimbursement rate is less than the normal labor rate they charge, and they may not have any techs who have experience replacing that engine. So the dealer may be trying to bamboozle you.

 

[srobak]

Yeah that's not a condition of the warranty far as I know - and is inconsequential. Let Hyundai know you are getting your lawyer involved and they should be pretty quick to do an about-face and this whole "value of the car" thing.

 

[deejank]

offered $10300... i will be in talks with them, thanks all

 

[Mark_888]

offered $10300... i will be in talks with them, thanks all

That's the wholesale or trade-in value. Sale to a private party is about $12,300 in "very good condition."

Just remember that the dealer is an independent business, not the same as Hyundai Motor America. You should contact HMA. The dealer is definitely trying to rip you off.

 

[Mark_888]

Here are MSRP prices, and online selling price that a typical Hyundai dealer charges at retail for the entire engine and short block:

ENGINE /ENTIRE ENGINE
Part Number: 101K13FU00
Genesis; To 2/17/10 4.6L
MSRP $12,117.70
Online price $9,694.16

ENGINE / SHORT BLOCK
Part Number: 201K23FU00
short block Genesis; To 2/17/10 4.6L
MSRP $5,876.68
Online Price $4,701.34

The actual dealer cost (not to mention HMA cost) is much less than the retail prices above that a Hyundai dealer has advertised on their website. Obviously, labor is extra, and billed at the warranty labor rate that HMA pays to the dealer, much less than regular labor rate.

 

[homeofstone]

Something smells here. What happens to car after $10,300 is paid? Does dealer then maybe have it fixed under warranty then sell if for $12,000.00 or more? I bet the dealer wants to sell you another car too. Contact Hyundai like Mark says and contact local TV station, there is a story here.

 

[kn5owa]

I pay little attention to warranties when buying anything.

That said: Do you have YELP internet service in your area?

I filed a bad review with Yelp a couple of days ago about a botched paint job at a body shop. In two hours, I got a phone call from the manager of the shop. And when I brought the car in today, I was treated like royalty - although I'm sure what they said behind my back was a little different.

Corrective work is supposed to be done next week (no charge), and they were literally begging me to take down the Yelp review.

 

[deejank]

Here are MSRP prices, and online selling price that a typical Hyundai dealer charges at retail for the entire engine and short block:

ENGINE /ENTIRE ENGINE
Part Number: 101K13FU00
Genesis; To 2/17/10 4.6L
MSRP $12,117.70
Online price $9,694.16

ENGINE / SHORT BLOCK
Part Number: 201K23FU00
short block Genesis; To 2/17/10 4.6L
MSRP $5,876.68
Online Price $4,701.34

The actual dealer cost (not to mention HMA cost) is much less than the retail prices above that a Hyundai dealer has advertised on their website. Obviously, labor is extra, and billed at the warranty labor rate that HMA pays to the dealer, much less than regular labor rate.

Hyundai Regional called me and asked what I wanted to do and I requested the engine replacement which was approx $13K. I will definitely make sure she pushes this request, makes sense why they offered $10K kbb value.

As others mentioned, i reminded her that nowhere in the warranty does it say anything about buying my car out. She said no problem and said she'll push the request forward to the dealership.

Crossing fingers, and I appreciate everyone's insight here. I feel much better once Hyundai corporate called me

______________________________

Help support this site so it can continue supporting you!

 

[homeofstone]

I had to have an engine replaced at 6000 miles in a 1989 Mazda 929. After that the car went on to run for years with no problems. When the OP get the new engine its also a good time to do transmission service. Then the car is good to go at least 100k more miles. Mine has 194000 on it and is running great. So to the OP, don't despair, with a new engine your car will be fine.

 

[Sal Collaziano]

I'm glad to see this all appears to be moving in the right direction. THIS IS EXACTLY WHAT THE GENESIS OWNERS GROUP IS HERE FOR! If all goes well - the owner of the vehicle - and Hyundai - will both be happy. The vehicle owner will have a new engine and a great running Genesis - and Hyundai will be the company that doesn't turn it's back on customers...

 

[Audio]

Following.

 

[PMCErnie]

Be sure to follow Stone's advice and pay for a transmission service too.

 

[Operationdoomsday]

Good luck! Keep us updated and I agree with everyone else, that no where in the contract does it state that they can buy you out instead of fixing the problem.