I am not trying to scare you. You bought a really nice, extremely low mileage car. It is practically new, but I just wanted you to know that with regards to repair costs and long-term ownership, the e53 is in a totally different league than the e36. The warranty thing is completely up to you. It is a gamble that there really isn't a right answer to (before hand anyway). You can always put that $3,500 into the bank and draw from it when needed if you don't want to drop it on a warranty. Things can add up fast. If you go to a dealer, expect the following repair costs; Alternator replacement $1,200+/-, rediator (still same crappy material as the e36) $800+/-, thermostat $500+/-, valve cover gaskets $600+/-, water pump w/valley pan gaskets $1,400+/-, window regulators $370+/-, etc. It all adds up.

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Profeshenal spellar