First thing I'd do is get a second opinion from another garage, pay for a full diagnostic from a reputable garage. I would not expect this level of wear and tear on a 5 year old car unless it has done serious mileage without being serviced properly.
I would also be very sceptical about why you didn't hear the knocking sound before the car was put into the garage. If the second garage comes up with a different opinion then you have recourse under the SoGA. Also how long have you had the car you may hve recourse with a dealer if you have only had it for a short time, but for 2nd hand cars it is normally 6 months.
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