I have lurked here long before registering and have always found the info that I needed. This site is a wealth of knowledge. But now I need a little advice.....

I have an aftermarket extended warranty. Been hearing a noise coming from the rear end. Took in to dealership to get looked at. Needs rear end completely rebuilt. They also point out that I have a head gasket leaking oil. With a little research here I found an older TSB stating the exact problem but the TSB only goes to 01' model year. Oh yeah, I have an 03' Supercrew, 5.4, 4X4.....

Anyways, ford recommended head gaskets to warranty company as well as rear end rebuild. Warranty company approved rear end rebuild but not the head gaskets. They had an adjuster come and look at it and take pictures. Apparently the leak is not what they define as a "leak". It is only a "seep", according to them, and is "normal". So they will not cover the head gasket leaking. This leak clearly starts at the head gasket and is not any higher. Ford has a TSB regarding this exact issue and exact location (passenger side rear of engine), but it is for slightly older (2 years) 5.4's.

I took my own pictures, posted below. What do you think? Leak or seep? I guess it does not matter what anyone thinks except the warranty company. I guess the advice I am seeking is what do I do from here? It clearly has a leak and the warranty company will not pay for the repair. Obviously it is an extremely costly repair that I can not come out of pocket for. What can I do? Do I have any recourse? I spoke with a manager at warranty company who said there is nothing more that I can do, that they have made their decision, unless the dealership can "prove" that the head gasket is leaking. I asked him what additional proof he needed besides the pictures showing the leak. He would not answer the question and said that I would just have to talk to my dealership about how they can prove the leak. Dealership says they have no pull one way or the other with the aftermarket warranty and are completely at their mercy regarding their decision and they don't know what more they can do to prove that there is a leak. Advice???

Thanks for any help!

 

I can only tell you what I learned by going to aircraft reciprocating engine school in the Air Force. On a aircraft engine that would also be considered a "seep".

 

Thank you for the reply. Maybe I am misinformed. I was a military mechanic as well, although not on aircraft. I might consider it a seep if the leak was at the bell housing. But being as how the leak is traced all the way back to the head gasket and comes all the way down the side of the bell housing and to the bottom, I would call it a leak. Again, maybe I am misinformed?

 

Well, I was informed that a leak drips and a seep does not.