California requires all manufacturers to warrant certain key components of the car that might fail and raise emissions. This is done by the California Air Resources Board (CARB)
They use a criteria of cost to decide on what must be included.
I know, FOR A FACT, that 2002 and 2003 E39 M5s include the VANOS..... FOR 7 YEARS or 70,000 MILES.
I have attached a pdf of the 2002 warranty booklet. 2003 is the same, I have no pdf.
(I actually helped a board member get his vanos covered on an earlier MY, and even though it was not listed for his year, BMW covered it not wanting the issue raised with CARB as to why the same engine has different warranties.)
A few things:
Dealers will profess ignorance.
BMWNA will profess ignorance.
They will tell you "talk to California" BS
They will say "Not covered under the emissions warranty, there are only 3 parts under the emissions warrant" No true, that is Federal, we are talking CALIFORNIA
Read pages 37 to 39. Pretty damn simple.
Good Luck. All it takes is one covered VANOS to make you a friend of CARB....
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EDIT: I won't be presumptuous, but please comment if you think this is worth adding to the FAQ/Sticky...