My 2015 Ford Kuga needs an engine replacement

This crops us frequently as a dispute between car owners and dealerships and it's all because of one thing: Extended warranties are generally not worth the paper they're printed on. They're designed to relieve car buyers of more money, thinking they'll be covered if the worst happens. Usually, the warranty is carefully written to avoid paying out on the things most likely to go wrong. Never has 'read the fine print' been so important.

Consider that the warranty your purchased only covers the first $3500 of an engine replacement. Where on earth can an engine be replaced for that sort of money? It's a clear case of the fine print giving the warranty provider a convenient escape clause. Don't forget, this extended warranty is not a Ford factory warranty, it's a third party deal that car-dealers love because they get a kick-back from the warranty company every time a car buyer signs on that dotted line. Dealers also love these warranties because it forces owners into over-servicing their cars. Does it not seem strange that the car designed and engineered by Ford to have a 12-monthly service interval suddenly needs a six-monthly service as part of the warranty conditions?

As far as the replacement engine goes, be very careful about what you're being offered. If the engine is, indeed, a reconditioned engine, it doesn't really matter how many kilometres it has already done because reconditioned means it has been fully rebuilt with new parts. If, however, it's a second-hand engine plucked from a wrecked Kuga, then I would argue that an engine with the same mileage as the one in your car should be fitted. But I'll guarantee you there's some fine print in that warranty that makes me wrong about that, too.