Is this the question saying the dealer wants $7,000.00 to fix?
You still have not said a word about your vehicle make, model or year. $5,000.00 is still a lot of money in my country, particularly to put in a older car.
Rebuilding the engine is probably not necessary though I am not familiar with the term "Valve Cylinder". If this is a Cylinder Valve issue (the valves that allow entry of fuel and the exit of spent fuel), this job requires the removal of all the 'stuff' on the top of the engine to get to the head(s), removal of the head(s), and remanufacture of the head(s). And of course, the process would have to be reversed.
This is a big job and there are PLENTY of chances for stuff to go wrong. This is not a job for a unskilled person. It is time consuming (probably take a minimum of a week or more) with plenty of opportunity for errors during disassenbly and reassembly. Special tools are required as well as access to a machine shop. And, there could be other issues. If there were nothing wrong with this car, would it be worth $20,000.00 or more? If not, it is probably not economical to repair this. Your money would be better spent on a different vehicle. Sell this one or trade it on another. That is my free advice.
You just logged this as a separate question. Please use comments when replying so we can keep everything in one place :-)
I really cant advise at this stage, mainly because I don't know the age of your car, it's value or the value of a replacement engine (I'm in the UK, HUGE price differences on these things).
If it IS a case of exhaust valve cleaning, I can't believe it would cost that much (Though, I'm not familiar with BMW Wankel engines, I have to admit).
I still think that you need to get a second opinion from an independant garage. Don't worry about how enbarrassing this is, it's a business and they will just have to tollerate it. Go in to the dealership. Ask "what the ECU falt codes show" and make a note of the error codes (The dealer will understand this and should give you some error codes). Then find an independant, tell them what has happened and what the dealer has said and if they think there is a more cost effective option.
If there is, then get your vehicle out of the dealer and get the independant to do it.
You are saying "rebuild the engine" as an alternative to what the dealer is suggesting, but the dealer is in fact suggesting a partial rebuild here, so what you are saying doesn't make a lot of sense I'm afraid.
What you need is someone to understand the fault. Explain it to you in layments terms and tell you what needs to be done. They also need to tell you if there are alternatives (For instance, an independant may be able to find an identical used engine from an accident damaged car and fit it for less than the repair.
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