...or to put it another way:
Volvo:
"I'm sorry sir, we won't refund you the price of the part or the work we did, it's only warranted for a year, as per the Ts&Cs. Also your not covered under the warranty for any consequential damage."
You:
"OK, I accept that. So that's the conversation about the warranty over with. Now, about the cost of the damage, can you show me where we agreed your parts or workmanship may cost me lots of money some time down the line? Oh, we didn't ever agree that? Ok then, I want to be compensated for that please - I understand this will be outside of your warranty though, so you'll have to find anther way of raising the money, I don't really care how you do it."
So, the way I see it, although you can't claim on their warranty, fair enough, don't. But they still need to compensate you