opinions needed
 

my car broke down last october 7 because of an oil spill caused by loosened oil gasket. upon questioning the service dept of hyundai they said it might have happened with the last service done to our car (the gasket was not tight enough when it was put back on). long story short the car was cleaned, washed and tested by 2 hyundai dealerships and told us everything is ok. Last wednesday my husband was driving the car when it suddenly went on limp mode (car stopped functioning, wouldnt start, steering wheel locked). we went again to the dealership and service crew told us the engine needs to be replaced because there might be residues that got there due to the previous oil leak. I would like to ask for opinions if I have the right to demand that they replace the car instead because the car is only 1 year old and it was their fault in the first place why there was an oil leak.

for clarification, are they saying they wont replace the motor under warranty?

They owe you an engine. They won't buy you a new car because it's "only one year old".