Rebel T2 125cc 2nd gear clanking and banging

[Bluerider]

1st & 3rd seem ok. Drained the oil - it came out in 2 streams, like there's something in the bottom of pan. This machine only has about 20 hours on it.
Oil was changed twice. Was never run with the original chinese oil.

Sounds to me like 2nd gear is gone - is this a big repair? If it is, anybody know if Gio will ship me a new engine under warranty?

[Weldangrind]

It's worth a try before you split the case. They will likely charge you a shipping or administration fee.

[FLASHLIGHTBOY]

usually gear problems are caused by a driver who thinks he is a racer ,... hard shifting is the most common problem... lots of reverse gears are taken out.. as the driver blows past neutral and right into revers... the motors are cheap on the auction if they wouldn;t do anything on warranty... but they usually do something like was noted above... shipping & handling .. small cost.. save the old motor for parts and learning