Just an update to say what happened at BMW!
I bought the car with an oil leak that I'd noticed, and after doing research I gambled that it was the seals on the intercooler hoses, that are known to perish. I managed to negotiate a sizeable amount off because of finding it, and took it to bmw thinking they could plug it in and tell me anything that was wrong, and also be able to give me the full picture on the oil leak, seeing as they would know it inside out.
Dealer said that it needed new rear H arms due to split bushings, and a new lower turbo due to the seals leaking.
Obviously I was gutted, £1600 for H arms and £2858 for the turbo replacement. I started thinking about where to get a new turbo and contacted eurocar parts, and thought about having it refurbed also.
To help me understand what I would be working with I started asking more detailed questions on the codition of the turbo internals, to which they couldn't andwer, so wheeled out the senior technician who worked on the car to answer my questions. Turbo seals have gone he says, what about impeller shaft play I ask? Yes there's a lot of play in the shaft he says and goes on to describe what happens when it explodes.
So I thank him for his time and take it to my normal friendly garage and I tell them BMW's findings with the agreement that they would do some stripping back and have a look at it and we would make a plan of attack from there.
I phoned the next day for an update and spoke to the mechanic doing the work. He tells me the turbo is fine!, it's not what's leaking, there is no play in the impeller shaft, and that he found it had excessive crank case pressure and that a filter was missing that was letting oil get into the charge air system, and the seals on the intercooler hose were letting oil escape.
He also said that nothing had been disturbed in a while, and that nobody had had anything off near the lower turbo to actually inspect it!
How bad is that? I complained to BMW who offered to inspect again as a good will gesture, to which I told them I didn't want.
To top it off my garage said the bushings on the rear H arms are fine also.
All in the repairs cost under what I had off the car, so I'm happy about that, but what a brass neck by BMW!