I was driving back from school and noticed a burning smell. Within 2 minutes I could no longer depress the clutch. The day prior my RPMs were high when shifting. I just had car serviced in January and no problems noted. Had towed to dealer and they are telling me the clutch exploded and damaged the transmission. They are refusing to honor the warranty on the transmission claiming that the clutch caused the damage.

I always believed clutches gradually wore out giving one time to have it fixed. I have no problem paying for the clutch since it is not under the warranty but cannot justify paying for a new transmission. Has anyone else had a similar problem?