While I agree that you should get a new vehicle and not a new engine only, it was good of them to tell you up front about the oil leak. Unless it was excessive, it could have taken you a few days to discover it and by then you'd be stuck with the car and the replacement engine deal.

I read a fair number of complaints about how BMW handles things. As I am new to the brand I guess it's too early for me to say, but in general I sense they at least try to do the right thing for the customer (and therefore their own reputation). But in the end they are a business with the usual constraints, and neither they nor anyone else can go around giving away stuff.

My experience with an MB dealer that eventually escalated to MB's regional manager did not give me this feeling. They screwed up badly during a service causing me and my family great inconvenience and even danger, and it took them more than two years and some sleuthing on my part to get them to even admit it.