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That seems like a ridiculous price to me. My E92 was the first year for the N54 and it had about every issue this engine could have and I never got close to $5k in repairs. And I'm sure the B48 is a lot more reliable than that TT N54, as well as the other parts of the car.
Just in general, over the long run you'll be better off self insuring than buying extended warranties and too many try to weasel out of paying citing some obscure exclusion.
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