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I had a similar experience but ate the costs not wanting to deal with the hassle, but I think your situation is worse. Based on what I've read and since you didn't pick up the car in Texas, you might have some options of interstate fraud. If you have enough info in writing (I didn't), you can use that your advantage. I would seek advise from a lawyer.
Also, they would be able to subpoena the vehicle's service history records. If it was ever in for the sunroof, or tranny issue and they knew about it then...and was in the service records, they flat out lied to you.
There's gotta be a lawyer on here that can validate/invalidate any of my comments.
If you need a TX lawyer to represent you, I would hit the bimmerfest fourms and try and find a bmw driver that would help you out.
I'm sure they picked it up from an auction and realized it was a piece of junk and tried to unload it as easy as they could.
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2005 x5 4.4i sport
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