What can cause a hole in the lower part of the engine block above the oil pan? I drive a 2016 f150 lariat 5.0L V8.

 

Your driving it? Any knocking, noises prior? Generally the big contributor is a connecting rod let go. If the base engine, rotating assembly is coming apart, take an oil sample at the pan plug and see what comes out. If a rod, there will lots of metal shavings, metallic debris..

 

this was when I started my truck and heard a banging noise coming from the engine. Oil was on the ground with small metal pieces on the ground.

 

Yeah, sounds like a piston connecting rod let go.

 

they said a inspector has to come out from the warranty company and I don’t know why.

 

Inspection of vehicle is standard procedure most any non OEM warranty claims and some OEM warranty claims.
Wouldnt you want to see the hole in your engine before paying a dealer probably over 3 or 4 grand for a new engine, Labor rate for a 5.0L F150 is like 18 or 20 hours.

 

yes they said it would be like 20 hours of labor and that it would be around $11,000

 

**** for that price you are getting a entire brand new engine, sometimes they get cheaper used engine or only get a short block and reuse the heads to keep cost down.

 

they said it’s a rebuild everything brand new inside But the engine block is not new.

 

Probably a short block and they transfer everything else from your original.