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I'm not specifically familiar with the 5 series oil notification system, but I am with the N52 in two different BMW chassis. It is not possible for the car to go 38,000 miles without an oil change and not warn the driver that an oil change is overdue. So either the oil/ filter used in the engine was not to BMW spec and failed in 12,000 miles, or the engine was sludged and damaged when he bought it, or your friend is a complete dumb ass and ignored the CBS.
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