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Otherwise, it's my understanding that if your car meets your state's "lemon law" criteria they usually refund your money. Which you can then take over to another dealer, any dealer. If you're not "lemon law", it's whatever you (and/or your lawyers) can negotiate.
For about the same money as an S40 and less money than an S60 I would DEFINITELY consider a Toyota Camry SE V6. (The only reason I don't have one is that I can't STAND driving an automatic transmission, this obviously is not an issue for you if you have an S40.) The Camry's reliability is, by most accounts, the best there is. If you must buy a Euro, there's the BMW 325i.
-Punxsutawney Phil
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