It is your responsibility to return the car so you're not going to get out of that one.

I don't understand the "there are no other cars in the price range of this size" comment as there must be unless the Megane was below market value in which case you'll struggle to get anywhere legally.

The dealer is at least trying to be reasonable so I'd try and deal with them nicely to start with and negotiate as if you go all legal it will put their backs up and in reality you might not get much more taking them to court and it will take 6 months during which you'll still be out of pocket and with no car.

Swapping it for another car sounds the best option to be honest - can you ask them to loacte you something similar?

Reasonable? Could you please explain to all of us how and why you think the dealer is being reasonable?

The dealer sold the customer the car, it went pop in 13 days and they now want the customer to pay £400 for the parts to put it right? That's reasonable?

What a strange world you inhabit.

My point is that at least the dealer is talking and seems interested in a solution - the best of which would be to swap the car. I'm not saying the current offer is necessarily a good one but it is a starting point.

To be frank, if the dealer simply put the 'phone down on the OP there isn't much they could do about it. Yes, they could go to court. But they've already said they haven't the money so probably couldn't do that and will either leave them with no car for 6-12 months whilst it all happens or they'll have to pay for the whole repair and then hope to get some money back. It'll take 6-12 months, involve a lot of time, upfront costs, time off work, and then even if they do win (not 100% certain on a 12 year old Megane - the court will push for a compromise via mediation) they have to get the money. Which may take years.

We don't know if the "warranty" is in writing or excludes the cambelt (many do).

Old cars go pop I'm afraid, old Renaults in particular. The OP has been unlucky but this is the harsh, horrible truth. Cheap old cars are a big gamble and that's why they're cheap. If the OP can swap it out for something else working then that is a result.

I'm guessing it needs at least some valves replaced so the head is coming off.

I'd question whether it is really worth fixing on a 01 Megane.

Still, I'd ask the question as to exactly what parts the £400 is buying and at what prices. Ask the dealer for a parts list and cross check the prices. They may well be trying to subsidise the labout cost by bumping up the parts.

Just as an update to my original thread. I contacted garage again quoting sale of goods act and my legal right and stated if I didn't hear from them within 48 hours I would start court action without further communication. They came back to me within 2 hours of email receipt and letter offering me a full refund, full repair of car or car from forecourt if I made up money.

We have just returned car and received full refund! Very happy.