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XC90 overheated

I purchased a 2007 Volvo XC90 a month ago, and on Sunday it stopped. The car yard's mechanic informed me the d5 engine had been running with no water in it and now requires replacing. The dealer's warranty says that it does not cover overheating even though there were no warning lights to say there was a problem. The dealer is telling me that I can get a loan to pay for a replacement engine ($4200), but I feel the problem was in the car when I purchased it. What can I do?

The engine cannot have been running without coolant for a month. I think you're going to have some difficulty in proving your claim that there was a problem with the car when you bought it.

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