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The only thing worse than your car undergoing a complete engine failure? Learning several months after the fact that your dealership concealed an extended warranty that would've covered the expensive engine replacement.

A couple who bought a 2018 Hyundai Santa Fe SE, Jason and Allison Burns, have taken the company to court over a defective engine. 

The engine, which was previously the subject of a National Highway Traffic Safety Administration (NHTSA) investigation, was also fitted into many Kia models. 

The couple bought the vehicle in 2019 with only 17,350 miles on it. In 2024, it reportedly stalled and lost power. There were only 79,966 miles on the Burnses’ Engine "when it catastrophically self-destructed," the lawsuit reads. An investigation found a hole in the engine block, likely caused by a broken connecting rod. 

Following the engine problems, the couple went to a dealership to have the part replaced. Following the NHTSA investigation, Hyundai began offering an extended warranty for this specific type of engine to cover Santa Fe models from 2014 to 2019 for up to 15 years or 150,000 miles. However, the dealership didn't communicate this to the couple. 

"For six months, Hyundai and its dealership intentionally and fraudulently concealed from Plaintiffs the very existence of the Extended Warranty," reads the lawsuit. "Such concealment allowed Hyundai to evade its expensive 'Extended Warranty' obligations to Plaintiffs, and allowed the dealership to: (a) purchase Plaintiffs’ broken vehicle from them for pennies on the dollar; and (b) sell Plaintiffs a newer, replacement vehicle on purely false pretenses."

The Burnses weren't made aware of the extended warranty until January 2025, when they received a notice from the car manufacturer. Unfortunately, by this time, they no longer owned the Santa Fe. 

Hyundai Motor Group on Unsplash

After spending months talking to their local Hyundai dealership, the couple agreed to sell the SUV with the bad engine for a fraction of its value and buy a new car from the same dealer for $30,000 instead of sinking money into the repair. In the lawsuit, the couple accuses the dealership of selling them a new vehicle "on false pretenses."

The Burnses' lawsuit claims the company has long been aware of the engine problems, citing several customer complaints that have been issued directly to Hyundai and the NHTSA. 

The initial NHTSA investigation that prompted Hyundai to offer an extended warranty on this engine was brought on by a petition started by the owner of a 2017 Hyundai Santa Fe, Jasmine Jewell. Her SUV's engine failed at only 61,413 miles. She had to tow her car to a dealer in Massachusetts, where she was told she needed to replace the engine—a nearly $20,000 cost, not including labor.

While Hyundai did issue a recall for Santa Fe models with affected engines in 2017, Jewell stated, “the broader concerns about the reliability of the 3.3L Lambda II engine persist.” 

She added that at least 11 class action lawsuits have been filed against Hyundai and Kia for these defective engines, for being prone to "stalling or catching fire."