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I just purchased a X5 a month ago with a remanufactured engine that was just installed. The previous owner replaced all injectors, spark plugs and just replaced the turbo lines when the engine gave out on him. The previous owner had to wait about two months to get the engine out of Germany and since he didn't have a loaner car, he purchased a new car and decided to just sell the X5 once the engine swap was completed.
The previous owner had to purchase the engine and the shop took care of the labor to install. The remanufactured engine comes with a two year warranty and it is transferable to me(checked with BMW dealer).
I have driven the X5 almost 1,000 miles (I am doing the "new engine break in") and it drives awesome, no complaints.
What was the problem that caused your engine to be sent back to Germany? Makes me wonder if my engine needs to have some recall work done to it already.
The really should give you the two year warranty that comes with the remanufactured engine. You are still under CPO, so you already have paid for the remanufactured engine when you purchased the CPO car(that is what extended insurance policy covers)
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