I'd be checking out the new consumer laws that came into effect this year... Assuming you purchased the car this year. If the fault is major, you are entitled to a replacement car or a refund. If the engine has crapped itself, I'd say it was a major, and you could argue as such. http://www.carsguide.com.au/site/news-and-reviews/car-news/lemon_story The link gives you some info on how it works, then maybe a call to your states consumer trading department. Either way the law states, you MUST go to the dealer first and report the problem and allow for diagnosis before starting any action. Then you can attack them from there... Which includes compensation for time without the car, etc, etc. I was speaking with a high level manager who works for a world wide electronics retailer, and he mentioned these new laws and that he had recently attended a seminar about them. He said these laws from a retailer and manufacturers point of view are extremely scary. Consumers can basically write their own warranties on basis of their expectation of how a product should perform and last. Like "My previous fridge lasted for 20 years, and this one has died at 5 years, new one please. I expected at least 10 years of service from it" or "The transmission in my EL lasted 600,000km and I bought another Ford because I expected the same reliability... But its only done 110,000km, new one please". The other great part of these laws is it puts the dealer directly in the line of responsibility for the product. So there is no more fobbing the problem off to Ford. The dealer is legally responsible for the performance of the product as well.