Sorry to hear about the engine failure.
If there is a known problem with a component that causes an identical failure, then you might have a chance with BMW. Short of that, given that the vehicle is coming up on 8 years old, meaning 4 years out of warranty, and that it wasn't purchased used from a dealer, I see no reason for BMW to contribute anything towards the repair. There are far more deserving cases for them to spend their policy dollars on, usually on people who have dealt with a dealer for the life of a vehicle from when the vehicle was purchased new, and where the dealer is willing to split the repair cost with the BMW marketing organization. The dealer has to fight for you, that is how BMW decides how to identify the deserving cases. You don't have a dealer in this discussion, so there is no reason for BMW NA to pay anything, according to their internal processes.
It sucks that your new to you vehicle had a major failure. But that is the downside of not having bought a newer vehicle with a warranty. You win some, you lose some. Sorry if that sounds harsh, but that is the real world.
I wouldn't be looking for an engine at this point. The cause of failure has yet to be diagnosed. You don't know how extensive the damage is. If it is one cylinder head, you should fix it. If it has minimal damage to the lower end, you should still fix it. If the lower end is damaged beyond economic repair, then look for a used engine. All IMO.
I would also be looking closely at the service history. Look for a repair that was done in the same area of the engine. A service issue is more likely than a design and manufacturing issue, for any engine with catastrophic failure with those miles and years on it. If head work was done at some time, then that is where you should focus the investigation. And if you find something in the service records, then that will lead you to who you should be asking for a contribution from, and it isn't necessarily the people who sold the car to a dealer in 2006.
I wouldn't waste time towing it to the dealer in the hope that the dealer will give you a freebie, either together with BMW or independently. If you have a shop you trust, use them for the failure analysis.
Good luck.
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