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[QUOTE=superH]Sounds to me like something fishy is up.
For one, I'm almost positive these cars have rev limiters to prevent over-revving (do you have a manual transmission?).
Also, how can they at first claim that it's bent valves, and then say the entire motor needs replacing. If the valves are bent, then the valves need replacing; if they "kissed" the pistons (doubtful), then possibly the pistons and valves will need replacing though that I don't think that's likely.
I have a hard time believing you were able to over-revved the motor. This problem should be completely covered by BMW under their factory warranty and I would expect to be driving a rental on their dime right now.
FWIW, I would have taken the car to a true BMW dealership first for a problem as serious as this.
The motor does have a rev limiter for sure. There is no way that the valves could have "kissed" the pistons unless the timing chain failed or slipped (a highly unlikely event). Furthermore the only event that could have actually bent the valves is contact with the pistons. Unless you completely lost timing this simply did not happen. Even with the overrev codes that still does not prove that your driving style harmed the motor. Any manual shifted engine is going to hit red line and a little over quite a lot. The engine is made to handle that.
Porsche is a good example of how a car company deals with overrev issues.
Porsche routinely checks cars with catastrophic engine failure for overrevs. Its not unusual to see 1000+ overrev events on an average Porsche when you check it. Mine had 1200 on the last check. Porsche still provides new motors for a lot of cars even with a lot of overrevs on the clock. You know why? Because the car is made to be driven in a spirited manner and they know it and they can't prove thats what caused the failure.
I would first contact BMW NA and settle this thing in a civil matter without a lot of emotion or anger. If that fails, then I would for sure seek council and or try to generate a little negative publicity. I think these dealers are trying to give you the run around. BMW NA likely knows nothing of this. Let them know at once. I am sure they will strive to find a solution that pleases everyone.
GL
Mark
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