Need advice-recently bought my 16 year old daughter a '98 318ti w/48k miles (2000 miles left on a new car factory warranty). One week later she was driving to school and the thermostat went out and caused the car to overheat. After AAA towed the car to the local Tampa dealer (Reeves Imports) the service manager called and said it would be $400 to tear down the motor and determine the damage. He later called back and said the head was warped and was not covered under the factory warranty. He wants $4,900 to repair. I know this is a total ripoff because I could replace the whole motor for about $3,500. I have two questions. Is it legit for the dealer to charge $400 to diagnose a car under warranty? Also, does the engine management system on this car not shut down the motor in an overheat situation? . Also, the car still ran (rough) before it was towed to the dealer (AAA drove it on the trailer).Any advice would be greatly appreciated