that's scary. yeah, what was their exact reason for denying coverage? pretty sure you have a decent case. i'd ask the dealer to take the car back and sue if they don't.

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'90 E30 M3
'05 X5/3.0 Sport (E53)
'03 540i/6 M-Sport (E39)
'91 325i/5 Sport Package (E30)
BMWCCA #360858 SCCA# 374179