Wanted to post this here for any other members experiencing a similar issue.

I got my Paceman used at about 32k miles. Despite this, and coming from a new 2016 WRX, it has proven itself to be the best car I've owned. Not without issues though, I'd been to the dealer (MNI of Morristown btw) to have a few minor things replaced while the factory warranty was still in effect such as the thermostat or a bad engine coil. There was always one thing I couldn't quite place or get remedied, and that was this persistent rattling noise occurring whenever RPM hovered at about 2k. I had kept complaining to the dealer about it until they finally said they couldn't figure out what it was and that I should try to get it on video for them. At that point it had briefly gone away and I figured it just had to do with the cold weather after seeing varying things on the internet regarding this sound. Incidentally, at that time the factory warranty had finally expired and CPO kicked in (which to this day I am still not certain what it covers ).

So yesterday the sound finally began to get to me again, as I had started to hear it again in a much louder capacity each time I drove since the weather began to warm up here in Jersey. This time I managed to record a decent enough video of the sound and shot up to the dealer, managing to book an appointment later in the day. Upon arrival and check in I produced my evidence and was informed of two little caveats as I handed over the keys: 1) If CPO covers issue, there will be a $50 deductible; 2) If CPO doesn't cover the issue and I decline to pay for the repair, there will be a $123 charge for them even checking into the issue. Wonderful.

Today I get a call from them regarding my beloved Paceman. Turns out the rattling sound I had been hearing (which for the longest I thought had to do with the clutch) was actually the heat shield for the engine. The car would need a replacement and the CPO warranty would not cover the repair, with the total cost coming to about $800 for everything. As my heart began to sink and I lamented my decision to get a used car in the first place, the caller continued:

"...but we informed our manager that you are a good customer of ours and have gotten other vehicles from us in the past. Since your factory warranty did
also recently expire as well, we have decided to Goodwill this repair at no additional cost to you"

I swear there is no legitimate way to describe how I feel at this moment. After having such a poor experience dealing with my Subaru dealer with warranty issues (two blown trannies and refusal to render service), I was prepared to bite the big one and seek out a trusted mechanic for whatever bombshell they were gonna drop on me. By some stroke of luck, or perhaps just the good nature of this actual dealership, my Paceman is being taken care of and I can continue to enjoy it. In the meantime I get to rock out in a manual Hardtop S for the next two days or so as they order the part, so this has just been a positive experience all around. More than likely I will continue to patronize this dealership, hopefully for a JCW in the future. Just wanted to share this with you guys, this "Goodwill" repair as they called it. I am stunned, and will continue to be.