Did they suggest you get a used motor, (as, in reality, it's the only sensible thing to do here,) or did they say they'd sell you one and do the install??? A BMW dealer installing a used motor is a new one to me.

The key to getting a used engine installed, is that some junkyards, (usually at slightly higher price), will guarantee a used engine for 90 days. Not only that, if the engine is no good, they will provide another engine and reimburse the shop for doing another swap. Since it's always a toss up on any used motor, and it's about 12-14 hours labor to do the swap, you want the labor guaranteed as well.

So if the BMW dealer offers to provide an engine, will they guarantee it for a certain period, INCLUDING labor? 90 days is plenty to know if the motor is good, and if you choose, get you onto an aftermarket warranty.

It is not in the filter. On my 3.0, it was in the filter housing. Assume the 4.8 is the same.

That was my question as well. I understand a BMW dealer saying you should go do this.....

There is a long thread on this board about a failed 4.8. The dealer made a mistake on a service, and accepted responsibility. They talked about a used engine for a long time. Eventually, they brought a new crate engine in from Germany. I seem to recall that it took 4 months or so.

The bypass (separate component) is there to save the engine if the filter does get clogged. Seems much more likely that the engine was making metal and that the filter issue was a consequence, not a cause.

Agree that the vehicle very likely had these issues prior.

They are now suggesting we buy the engine and they will install it.

How much for the install?

They have dropped labor down to $2,750. I have an outside shop that is willing to do it for $2,800

Oil Filter
 

I attached a picture of the oil filter.

It is a Hengst oil filter.

I don't know what they were talking about. BMW said right from the beginning that they would install a used engine. They even sent prices on different salvage places that they had used previously for other people.

Another dealer in Waukesha Wisconsin said the same thing. . .