75% of what?, new full engine? you get a new engine fitted for labour charges only, which might be 20 hours @ what? up to £100 an hour plus your 25% of an estimated £7000, so your bill could be about £3500ish...hopefully less if you can come to some agreement about either a fixed labour quote or a better hourly rate with a firm quote for hours.
What if its a new crank and bearings, or a short engine (i reckon thats what they have in mind), you might end up with 30 hours labour by the time rebuild is complete, cost of parts 25% of anything between £1500 and £3000, so you might end up paying out up to £4000, again much depends on what you can get re labour charges...bear in mind you do not want a mech rushing a rebuild cos he's on a fixed time allowance.
Thats not taking into account the cost of new turbo either (required for full or rebuild), plus pipework, or the new oil pump etc which will be required for rebuild.
Personally i'd want a new engine and not a short block or worse still new parts like crank and bearing being fitted, cos you won't know how many engine rebuilds the mech doing the job has been involved in for one thing nor how thorough he is in finding the nasties now loose in the oil system, and its worse value for you in the long run as its more labour intensive, and when you come to eventually sell the car (another thing to consider) a new engine fitted @ 60k is a private sale bonus, but you won't want to put in your ad that some unknown mechanic has stuck a new crank and bearings oil pump and turbo nor would a short engine be as desirable as a full engine.
I would visit the service manager and involve the dealer principal and get better definitions of the failure and what they intend to fit to the car, obviously if a poorly fitted or poor quality oil filter pouring oil out was the cause of the problem the evidence is now long gone...so all IMHO you can do with this garage is try to pin them down to a fixed cost for you and then decide if it's worth proceeding.
It might be cheaper for you to get a used engine complete with turbo and all ancillaries fitted by an indy, but that's for you to decide after you've negotiated more.
Hopefully someone else has got better answers for you.
Edited by gordonbennet on 26/01/2016 at 10:22
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