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Scott, is this knock apearing if stationary or at very low speeds or it is also there if car is moving faster?
if it is a loud single or double knock (clunk) apearing when car is still or moving very slow i would say it could be the steering rack... i would imagine this should be covered under warranty unless bmw prove it suffered mechanical damage (hitting kerb or sth).
hope you will get this fixed painless.
dont forget to let us know about the outcome.
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