The CPO warranty is different in Canada, but I don't have a copy of it. It is likely pretty similar to the US version.
The clause that the dealer is probably relying on (from the US CPO documents) is as follows:
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Please note that many parts on your BMW are subject to wear and tear, and may wear out over time in the normal use of your automobile or light truck. This is not a defect in material or workmanship, and is not covered by the Certified Pre Owned BMW Limited Warranty.
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Leaks occur due to thermal cycles and degradation of the materials over time through those cycles.
Warranties are for defective parts, and if it was manufactured with a defect it would tend to leak from new. If it goes some years and starts leaking, that is defined as wear and tear, not a manufacturing defect, unless you can point to a latent defect that was always there (like a porous casting). The problem is the o-ring material that seals the sleeve. While they have reportedly updated the o-ring material, that doesn't define the original one as defective, just as not meeting consumer expectations for component life. It sounds harsh, but unfortunately warranties don't guarantee that all our expectations will be met.
When gaskets and such items that are not covered are replaced at no charge during a warranty period, it is usually due to a dealer deciding to do a goodwill repair as an investment in customer retention.
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2007 X3 3.0si, 6 MT, Premium, White
Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue
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