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I had a very similar issue (loss of power, limp home mode etc) however it was a Vanos solenoid that had failed. North Shore BMW repaired and replaced under Premium Selection warranty - no charge to me. (car was purchased 2nd hand from Canterbury BMW).
All I had to do when I dropped the car off was remind them that the PS warranty applies to this mechanical fault I'll 2nd Stu's comments - tell them its under warranty.
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