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Take it to arbitration. You don't have to simply accept what the dealer or manufacturer tells you. If you disagree with their assessment, file an arbitration case and try to make them fix it under warranty or reimburse you for what you paid. Usually the manufacturer pays for the arbitration in exchange for you giving up your right to fight them in court.
There should be some information for filing a claim in your sales contract. Often you can get an attorney to give you some advice on filing one of these claims for no or minimal cost. To me, $1,100 would be worth the money to pursue that.
Regarding the fraud issue, the legal definition of civil fraud includes intentional deception or concealment of material information in order to cause another party to act to your benefit. You did lie about tracking the car in order to get service, but if the fact that you tracked it isn't material (relevant), then it wouldn't be fraud. The fact that you lied about it might complicate matters in arbitration, though, because it makes it look like you had something to hide.
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