I'm all for good signs at this point

 

That is a very good sign of someone who doesnt want trouble and wants you to go away. He's trying to buy you out for as little as possible. Hit him with a much higher number and tell him you'll take legal action and rain hell on his business if he doesnt cooperate. Dont act a fool, keep it calm and keep it legal. Well informed people with legal insight are a lot scarier than someone just making a scene. Typically dealers know how mad customers work. Customer gets angry, screams and yells and eventually goes away when the dealer refuses to cooperate as they think there is no other option. Being a constant pain and exploring every avenue possible is sometimes enough to scare someone into settling with you. Last thing he needs is to go to court and lose and possibly face fraud charges. Nobody is typically willing to face jail time and lose their business over a few thousand bucks.

Do yourself a favor and see if there are any other complaints listed. The BBB has every complaint from the last 3 years on file and you can find them online. Site like ripoffreport also have things like this and they are very helpful to your case should it go that far.

Honestly though if you signed anything that states the car is as is and has no warranty, you might want to take what he offers since he legally would not be tied to it under those circumstances unless state law protects you.

 

Tell him you accept his offer to have his shop fix the engine and pay you $400!!!!

 

Pretty much sums it up

 

I'd go down with the assumption that you lost and he won, and before saying yes to the $400, and while being very kind, ask again if there is anything additional he can offer you.

 

Is it a small independent used car lot or is it a new car dealer that also sells used ones?

The $400 will at least cover a good bit of parts. I am happy for you that he did at least agree to that concession. Grandma must have put some fear in him!

Even after the settlement, I would post a clear description of what he did and advise other potential customers to be aware of what happened in your case. If he wants you to sign a nondisclosure agreement, tell him it will cost more for your silence.

Since your wife is a teacher, does her benefits or union membership also include legal representation. My wife's last job did have free legal assistance thru their union.

 

The $400 offer is a good sign that he is willing to work with you. Go back, be pleasant and calm and present him with a list of parts that are needed to complete the job. Since he may have no idea what you plan to use the money for or what the parts actually cost; ask him to provide you with the needed parts in leiu of the $400. He should be able to purchase the parts at a discount and have an account set up to pay for them. He will not have to just fork over cash and might be very receptive to the idea seeing that you are willing to work with him.