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Have you ever thought about internet justice or parking the car across from the dealer with a giant sign?
Sometimes ranting on several message boards could get you enough attention and provide bad press for the dealer to give in. Or start posting your story across reviews.
If you have time you could always park across from the dealer with a giant sign that says "engine seized after XXXXX miles. Dealer denied warranty. Ripped Off." I promise you that if you do this for a week or so they will eventually give in. If not I will buy you a cookie. (proof required to get cookie).
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