I agree. I am sort of pushing them in the direction of a private seller.

Hmmm, I was under the impression that as long as the car was still under the original manufacturers warranty, that the current (not just original) owner could extend the warranty.

When I was in the market for our X5 a few years back, I called BMW and specifically asked them if I were to buy from a private seller or a random dealership besides BMW would I be able to by a BMW extended warranty and from what I remember the answer was yes. Also, my buddy bought a used 2002 e46 M3 from private seller and was able to get an extended warranty through BMW.