The dealer who sold me a vehicle with a broken engine won't replace it - what are my options?

I bought a 2011 Volkswagen Caravelle with the 180PS engine 10 weeks ago. Since owning, it has been burning oil at an alarming rate - way higher than Volkswagen consider acceptable. Fuel consumption has also been terrible (19mpg rather than the expected 27-30). Both Volkswagen and my local independent specialist have recommended full base engine replacement as there is a recognised inherent fault with the engine (corrosion of EGR cooler destroys the bores), which cannot apparently be fixed. Trouble is, the dealer I bought from is only offering to repair, not replace, the engine. Given Volkswagen's own position on this, I struggle to see how this can be a satisfactory repair. What are my options?

Asked on 1 April 2018 by Iain McAlpine

Answered by Honest John
I would cost the full base engine replacement and tell the supplying dealer that if he doesn't pay for this (or take the car back and refund your money) you will sue for it using Small Claims. The Small Claims limit is £10,000 and the new short engine will be within this, but I guess you paid a lot more than that for the vehicle. That's the reason for suing for the engine rather than for what you paid. See:
Similar questions
I purchased a 2007 Citroen C4 Picasso on December 1 2017. I quickly found the car would judder, hesitate on pulling away and cut out on me. I informed the garage of this, and they said that was normal...
We bought a 2006 BMW X3 six weeks ago. It recently lost power while my wife was driving and it whines when accelerating. I called the dealership where we got it from and then took it to them to look at....
I purchased a Skoda Yeti from an authorised Skoda dealership 12 weeks ago with a full Skoda service history. However, it has been off the road, in their garage for 17 days with broken suspension springs,...
Related models
Similar cabin to Volkswagen car models, very quiet and refined on the move, luxury feel, plenty of rear space, strong performance from 2.0 TDI engine, upmarket looks.

Value my car