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"My rear end's leaking" You need to make it right.

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I need some words of wisdom to resolve an issue, or at least thoughts on how to handle this situation.

 

Long story short (sort of); We installed a used rear end assembly in an 07 Mustang GT due to noise/howl in his - 16 months ago. Chose a used assembly (mistake #1) b/c "rebuilding" his to correct a howl was not a job that I was comfortable doing. (Past personal horror stories prevent me from opening up rear axles!) Yard offered a 6 month warranty which was documented and he was aware of. He authorized, paid and left, I have a long term relationship with this customer, more as an acquaintance than a regular customer, but occasionally we will do something for him. Fast forward more than a year (during which I've seen this car once for another simple service). Calls and says "there's a drip in my garage floor - I think that rear end is leaking." He brings it in and sure enough there is a "seep" from the pinion seal. Again - fearing opening a can of worms and knowing all warranty has expired - I top it off and advise the dealer for what I'm thinking should be a relatively straightforward repair for a Ford tech. (mistake #2) He reluctantly agrees and leaves, not a word said about noise or warranty. Today (two weeks later) he storms into the shop and proceeds to give me a serious tongue lashing, claiming that "Ford says that rear end was junk when you put it in, the pinion bearing is wiped out and that's what caused the leak and that they're going to have to "rebuild" it (whatever that means) - and for less than you charged me to put a used one in! you should have sent me there to begin with!" But now today all of a sudden, he claims that "that rear end was still making noise from the day I picked it up!" (16 months ago) but he never called to tell me, not a word in 16 months, and didn't even mention that it was making noise when he came in with the leak 2 weeks ago-not a word until the dealer "told" him I sold him a "junk" used rear end. He was angry. I listened, I asked why he never brought it to my attention? Especially knowing the warranty was 6 months. I didn't get a logical answer. After he'd vented, I asked "what would you like me to do at this point?"

His answer was "I'm not going to tell you what to do, but you need to make this right! You think about it and call me."

 

Question to you all....how do I handle this to avoid mistake #3?

 

Thanks in advance.

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