Dealership Replaced My Engine Without Consent, Used My Warranty Without Telling Me — Now I Lost Coverage And My Refund. What Can I Do?

Hi, my name is Ilya. I want to share a completely absurd situation I found myself in.

In May 2024, I bought a 2017 BMW 430i GC on credit from BMW of Carlsbad. Along with the car, I purchased a warranty from Veritas Global Protection for $5,923. Within just two weeks of the purchase, the car started leaking oil from the engine. I immediately brought it back to the dealership, and they said they would fix everything for free. However, the same issue happened again — 5 or 6 times. Every time, they claimed to have fixed it, but the oil leak kept returning. The car spent nearly six months in their service department.

Only once during all these visits did they use my warranty, which they weren’t supposed to, because the issue was never resolved. When the same problem occurred for the seventh time, I knew this couldn’t go on. I wanted to discuss a trade-in or a full refund with loan cancellation. But no one at the dealership really asked me about my plans.

A month after I last dropped off the car for service, I called to check on the status. That’s when they informed me — without prior discussion — that they had already ordered and were replacing the entire engine. I was, to say the least, shocked. I never agreed to that. I never signed anything authorizing them to use my warranty for such a major repair. Later, they claimed I gave verbal consent over the phone. I did not — the first I heard about the engine replacement was when I called myself during the middle of the process.

They went ahead and replaced the engine, and to be fair, the issue hasn’t returned. When I picked up the car, I was given a long 4-page technical document to sign. I signed it without realizing that, buried in small text, it mentioned that my warranty had approved the repair. At that moment, I had no idea the warranty had been used.

Right after that, I decided to cancel the warranty — I figured such expensive coverage was no longer needed since the engine was brand new. I had a $200 deductible for each claim, but I wasn’t charged a dime — which reinforced my assumption that the warranty wasn’t used.

When I began the cancellation process, I was told I’d get the refund amount only after the contract was fully canceled. They estimated it would be around $4,000, since only a year had passed out of a 3-year contract and I had driven only about 10,000 miles. I agreed and signed the cancellation request.

A couple of months later, I got a response: I would receive nothing, because, as it turns out, the warranty had covered the engine replacement. Keep in mind, I’m still paying for that warranty through my loan, but now I no longer even have the coverage. It’s ridiculous.

I immediately asked if I could reverse the cancellation and restore the contract — of course, they said no. BMW of Carlsbad denies everything. They claim I was informed and gave consent.

Please, I need help. What can I do in this situation?

P.S. I may have missed some details — feel free to ask any questions.

Location: Carlsbad, CA