Background: I have a 2013 BMW X3. When I purchased the vehicle, it included a 2 year limited power train warranty. The warranty expired 11/11/23. I have a family friend that performs minor work (brakes, etc) but I usually go to the BMW dealership for oil changes and major problems.

Being as my warranty was ending soon and I had already gone through the warranty company to get one rather pricey repair (timing chain), I decided to take my vehicle to the dealership for a peace of mind inspection before the warranty ends. I had no major complaints. I thought the vehicle had been sounding a little loud lately (I describe it as the vehicle sounds like it’s trying hard - I asked other people who routinely ride with me and they didn’t hear anything) and the drivetrain malfunction light came on the day before my appointment at the dealership (it comes on when there are drastic changes in the weather - I’ve taken it to the dealership twice and they couldn’t find a problem).

I was shocked to hear that I needed a new engine due to ball bearings. The technician reported a knocking noise but I never heard knocking, only what I can describe as a whirring noise. When they ran the codes, they saw a code for faulty ball bearings. The warranty company only paid out the value of my vehicle so the new engine would set me back ~$5,000 out of pocket. When they began work on the engine, they noticed that my engine mount had collapsed. They would only charge me for the part so I agreed to have the mount replaced too. The technician suggested an overnight test and I agreed. I was even more shocked to hear that the technician still heard the noise during the overnight test and they now believe it is the front differential. They are working on a quote and mentioned going through my warranty. The warranty expired last week. Paying $5,000 + a couple thousand for the differential would be more than the value of the vehicle and unfortunately over budget.

I feel like I shouldn’t have to pay for the differential repair as either they failed to diagnose the problem correctly or were not throrough in their inspection of the vehicle. If both the engine and differential were found to be the problems when I brought the vehicle in for the inspection, my warranty would have covered the differential in full.

Would I have a chance of fighting the cost for repairing the differential or am I SOL?