<p><em>"one more thing, where the 7k number come from? Even a brand new engine from BMW costs less than that. I know you can order a six for around 2 to 3k. Labor cost can't be more than 1.5k even if you do it at dealership. If it is just the gasket, you can get it done for less than 1.5k at a BMW dealer, at less in LA "</em></p>
<p>Sorry, I have to disagree with that. $2-3k for a brand new long block? Or lower end only? Though I've never worked on a bimmer I have done major repairs (including engine drops) on more than a handful of comparably complex cars and IMHO $7-10k sounds fair. E.g. a G35 short block goes for over $4k and bare heads are $600 each. Infiniti's V8 is $7500 just for the bare long block. Labor at a dealership in SOCAL is around $120/hour. I think labor for a HG is probably close to 20 hours, more if they have to drop the engine.</p>
<p>Effenheimer is right. If you want to keep the car the best thing to do is source a used engine with lower miles and have a good independent do the work. There are bimmer forums out there and I'm sure you can get a good referral from local owners. I'd guess $4k to fix if you go this route.</p>