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It sounds like the previous owner has an extended warranty she must have forgotten about. She should be able to process a refund retroactive to the day she sold it to whoever she sold it to (assuming she has the sale documents), and it's really her refund (I'm not saying your coworker wants it- I'm not implying that). She paid for it. She will need to go to the BMW where she bought it to request the refund. A BMW dealer or the Carfax should tell you where the car was first sold. That dealer's motivation to cancel the warranty will be low, as they will have to refund the profit portion in the cancellation. I wouldn't be surprised if they don't want to get in touch with the original owner and wind up refunding some past profit. Hopefully your coworker has the ability to contact her.
Your coworker could move ahead with an aftermarket warranty on his own. That won't be contingent on cancellation of the BMW extended warranty. He may need to be withing 1 month and 1,000 miles of the factory warranty expiring to avoid a higher price and possible vehicle inspection.
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