I'll put a tldr below, it's sorta a long winded story.
We bought a car about 6 months ago from one of the bigger used car dealerships. It was only a few years old and had less than 16k km. We got the car for our growing family and it was perfect for us. Fully loaded and we were really happy with it. We paid cash (so no loan in this whole situation) and got their extended warranty.
2 and a half weeks ago the motor started losing power. It got worse over 24 hours and to the point the car wouldn't drive anymore. We had to have it towed to the dealership to work on. They said no problem, it'll be covered and should be fixed within a week or so. They didn't have any loaner cars at the time, so they made us use our car insurance to cover it. This was the first thing that bothered me, but at the time we didn't have a choice.
A week goes by and the shop said they need to have another shop look at it, as they are unable to fix the car. They knew our insurance rental car time limit would be over in a week, so they said they would be sure to have a car for us of their own. Another week goes by and we had to switch cars, they gave us a kei car. At this point we've been downgraded in car sizes twice, which sucks but shoganai right?
Later that evening, they call us back and tell us the car has been in an accident, by the shop they gave the car to, to work on did it. Turns out that was a Toyota dealership netz, that was next door to where we bought our car (a Toyota). It took a few days to get any real information of what happened. The guy assigned to talk to us about everything, was the mechanic who was speaking to us since we dropped the car off.
This was last Thursday, he assured us we'd get a better sized loaner car, as this may take some time to get resolved. He doesn't call us back until Sunday, tells us the shop that crashed our car is going to give us the same kind of car we originally had/have, but it won't be ready until Friday. We decided to go to the shop and talk to them in person and ask to see the car (I still needed to get a few things out of it anyway). At no point did anyone else speak to us besides the mechanic. No managers came up to say they are sorry, nothing. He tells us the shop that crashed the car probably wants to just fix it and give it back to us. We aren't happy about this, but if it's not that bad, then we can understand it.
So we all walk next door to look at the car. It's way worse than I thought. The right front fender is completely destroyed, you can't even open the front door. The bumper, one headlight and one of the wheels are the same. To me, it looks like there is almost no way the frame or at least the suspension isn't damaged. We're kinda in shock after seeing it, as they were trying to down play how bad it is. They tell us they are waiting for a 3rd party to come and decide if it's totaled or if it can be fixed and not be considered a repaired car or not. Two people from Netz did apologize to us at this point. The issue the car has only happens when it's driving. They were driving it to test it and ran into another customers car. Which was actually a big work van thing, like a proper sized van. It's front end is pretty damaged too, but no where near as bad as our car.
To us, this car is worthless now. Even if they manage to fix the damage, it's been in a wreck. I'd have to lie to someone to say otherwise. The engine problem itself is still not fixed either. The dealership we bought the car from keeps pushing everything on the place that crashed it. They don't seem to be taking any responsibility for the situation. This is one of the biggest parts bothering me. The place that crashed the car, we aren't their customers at all. They don't have any reason to do more than the bare minimum for the situation. The place we did get the car from though, doesn't seem to be doing anything.
At this point, I'm open to anyone's advice or insight into a situation like this. I have friends in other countries that work in dealerships, but that doesn't exactly apply here. Most people we've asked say we should be raising hell until the shop we bought it from gives us another car. We want to be somewhat understanding of the situation, as it's complicated and hasn't happened with them before (so they say). However, we don't want to get screwed over either and every day we are stuck with a crappier car makes it worse. Should we go back and demand to speak to a manager, call a lawyer, ask our own insurance company for advice? I'm not sure where to go from here. I'm worried they will try and just fix the car and give us back something potentially unsafe and make us lose out on any of the value the car had in the first place. The whole thing has been really stressful.
TLDR: Bought a car with a warranty a few months ago. Car breaks down, take it back to dealership. They can't fix it, they have another shop work on it, they wreck it. Original dealership keeps putting everything on shop that crashed it and we're trying not to get screwed over.
Quick update: Thanks for the advice everyone. There were some things you all brought up we didn't think about. We called the dealership and setup a meeting with the store manager for Thursday. We immediately then called our own car insurance, we don't have time for a rep to call us back today and will talk to them tomorrow instead. We were able to find information on a consumer lawyer consultation. After we speak to our insurance company tomorrow, we will give them a call too. This way, come Thursday we will have better understanding of our rights and situation, before we talk to them again. I'll update this again when we know more. Thanks again!