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Sorry to hear this happened. I think I'd open it up to see what failed. 7500 is a lot to spend but seems like the only/best option. These types of catastrophic failures seem rare but it's the reason I decided to get an extended warranty on my 1 series.
Let us know what you find out & decide.
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2011 135i w/ DCT | ZSP Sport Pkg | PPK | Ohlins R
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