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Okay, some of my POV have been stated but some have not-
You have a new car, with a new engine. The rings have not been seated yet AKA it will burn oil. You don't check your oil for 3700KM, very smart idea to do. On the basis of that alone I can understand why the dealer would say no new motor at all. Warantee dosen't cover stupidity, they are responsbile to figure out why the oil was lost but the damage that was done due to neglect is not thier fault. If they are going to give her a new engine that right there is already above and beyond the call of duty by Honda.
The "original motor" really dosen't apply any more. Numbers don't match from the factory and the day a Accord goes for what a 1969 "numbers matching" chevelle, that is the day I stop tinkering with cars. The truth of the mater is they do have a S/N on the block but they no longer run in consession with the VIN for most auto manufatures.
A new motor -might- lower the resale value of the car, but it might increase it. It all depends on who is buying the car. People have conflicting views on having a new motor in the car. If it gets replaced now and she drives it for 50,000 miles and then she sells the car I don't think there would be any loss in resale. It was a warantee issue, people have those from time to time. If it was a dealer swap into a new motor it would have the least negative effect on resale (if any). As stated, I think a lot of people would take this as a plus.
I still think it is way out of line for them to give her a new car, she should have checked the oil and this never would have happend. If there was a mechaincal failure that she had no control over it might be a little differnt (but I still don't think a new car would be in order) but the fact of the matter is you need to check your oil, esp. with a new motor.
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The local track whore
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