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Here's what I think (and it requires you to restart/reset your thought process)
You bought a car with 39000 miles. I am assuming clean title.
The car should have been easily fixed under the 5-year/60000 mile powertrain warranty, but for whatever reason it is not.
You should not have agreed to pay for the diagnostics fee, but you did and it's already $1000 too late into this mess.
What basically needs to be done at this point is you need to stop trying to get the dealer to admit or reconfirm what they said last time. You need to stop trying to get the service advisor to provide you some confirmation or acknowledgment of whatever you are trying to prove.
I would recommend you type everything down on a piece of paper, with a clearly defined timeline of what is going on, and either bring it to the service manager, or the GM of the dealership, and lay out options. If need be, print out copies of paperwork and facts relevant to the car's history, and not a transcript of verbal conversations.
If you feel you shouldn't have to pay a dime for this and there is continual pushback, you should escalate this with either lemon law, or attorney.
I really dislike the whole "let me spell out word for word what this person said or what that person said", because you're so focused on individual words that you miss the bigger picture of getting your car fixed under warranty.
-alex
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