If your lease term was 36 months and you returned the car with 13k miles on it, I can’t understand how they would charge you when the manufacturer warranty is still in effect. Unless they discovered something that voided that warranty?
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Yes. I actually returned it a couple weeks early.
Just looked at an old post of yours. Is BMWFS really charging you more than the residual? 
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Sometimes a deficiency goes above and beyond the residual. The whole thing is just strange.
f^%#$ng ridiculous
That wasn’t my question, was the vehicle still in warranty?
If it was a service loaner that had been used for 1yr + than it would be out of warranty
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Loaner BMWs don’t get the minimum new vehicle warranty? Wtf.
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I think you need to go through a bit of a process with the dealer and get to the bottom of their rationale for the charge before seeking any more advice here.
We can’t really help as we don’t know what steps they went through to get to the determination that you owe $25k.
Post an itemized list of charges for better feedback.
As a frame of reference, during some recent small talk the independent mechanic that I use for my M550 ballparked replacing that V8 engine at $16,000.
True, the labor rate at a dealer would be higher, but this is also a 4 cylinder.
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Should be able to just lift it right out with a coupe of guys!
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Replacing the muffler bearings is mandatory. 
Keep us updated… this one is kinda wild. 
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They do, being a loaner is irrelevant as to the final outcome (warranty) other than being a mule that was driven hard in the first few K. That might have something to do with the engine issue but I highly doubt it.
Has to be a screw up if the maintenance was legit, etc. BMWFS does not just try and rip people off at lease turn in with some wild claim the block is bricked.
Can we meme this ASAP?
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I’m finding the inverse with several transactions.
If they completed the inspection, found no issues, presumably gave you some sort of receipt stating such, how can they now come back to you for this?
I’d start recording those calls with a second phone to have everything available if one rep changes their story vs another.
Well one thing I noticed that no one else mentioned.
Should’ve gotten it preinspected, then they can blame the Dealer for F’ing it up.