I am looking for any positive insight on what to do. We purchased a Blue E39 M5 in 2002 by order and it has been a garage queen ever since. The only use has been road trips and the car has only seen one rain storm, no snow, and is kept in a Carcoon the rest of the time in Vancover BC CANADA. The only time it has been in for service before last week was for oil changes every year, the required diff and gearbox fluid in year 2 and it had a faulty alternator back when it was a year old. Basically a pristine E39 M5 with not a scratch on it. That being said, when it went in for this year’s oil change I decided to have the dealer also change the coolant as the original stuff is from when it left the factory

It appears that the tech at the BMW shop did not use a torque wrench when the plug went back in and produced the hairline crack in the block, although the dealer states that they do not know how it happened. Again the car only has 5,500 miles and the dealer has stated that they want to replace the block at their expense.

Can anyone provide useful feed back to this situation? All suggestions are welcome. Any like experienced situations from another member would be appreciated.

If this of course happened within the first two years after purchase, we would make the dealer buy the car and order a new one. We do not want a new M5 or a trade credit on a new car of any kind we want our pristine stock E39 as it was before this big problem.

As we all know the more items on and off the more likely the car will not run right cams, pistons ect... and that is what I am in for if I just let them replace the block.

Anyone have an opinion if it is plausible to demand a new short engine be shipped from BMW and dropped in? I am trying to determine the cost for the dealer either way as that is what is going to make the difference for them.

The General Manager stated the block will cost $12,000 and take 19 hours with three Master Techs. If this is true and their wholesale price on a short engine from Germany is say $20,000 and only 5 to 6 hours to make the switch I think it is worth pushing for. The General Manager also stated that the BMW warranty would be 2 years on the part only? Does not sound right either way this gets repaired. Then there is also the question even in the best case senario that this will also ruin future value. Again any comments would be helpful.

BtW... we have already called BMW NA and CA and they stated that it is between us and the dealer and do not want to get involved. Thanks in advance, Greg

Pic of the hairline crack is not attached as it is too hard to make out-