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Hyundai Elantra 2012: Should Hyundai pay for a faulty engine in full?

I purchased my 2012 Hyundai Elantra in 2016 and apart from the radio/CD player dying after a couple of months and the front headlights needing to be replaced a couple of times since purchase, I’ve had no problems. I have serviced it at the dealership on time and have full service history. This year my car started making a ticking sound. A mechanic friend said he’d heard about this problem in Elantras and suggested I get it looked at ASAP. Sure enough Melbourne City Hyundai looked and said I need the engine replaced ASAP! They said Hyundai would cover 100 percent of parts, but not labour as it was out of warranty by almost two years. Labour was quoted at $175 x 15 hours. They said the engine could fail at any moment and I should be careful! Am I wrong to expect Hyundai to cover labour as well seeing as there was some kind of fault in the engine for it to need replacing so soon after purchase?

The Elantra’s 1.8-litre engine has reputation for piston slap and ticking noise, hence the offer to cost of the parts. Carmakers will often make an offer like this, they pay for the parts, and you pay for the labour. They usually argue that you have to bear some of the cost because you’ve had the use of the car for a period of time. If you want to pursue it try to convince Hyundai to come around to your way of thinking by direct negotiation, or enlist a government body like the ACCC to help you.