Under the Consumer Rights Act, which came in in October 2015, you have a 30 day rejection period. Basically, within that time, if a fault develops, YOU have the ABSOLUTE right to reject the car and receive a FULL refund.
You may choose not to exercise that right and accept a repair, if the garage offer to repair.
Similarly, the garage may refuse to do a repair, and insist on providing you with a full refund.
As Galaxy has pointed out, this is nothing to do with the warranty. The fault was 'present or developing' at the time of sale. The garage attempting to claim on the warranty, or encouraging you to do the same, would be the criminal offence of Fraud.
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