My 2 cents...I would offer $4k cash and worst case, put in a used engine...I know that Bavarian Engine Exchange offers used BMW motors...how mechanically inclined are you?

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E46 330i (Sold)
E90 328i (Sold)
E90 325i (Sold)
E90 328i Xdrive (Sold)
2009 VW Touareg 4.2 Highline