There seems to be some confusion about which 2.0-liter turbocharged F30 engine is which. All four-cylinder F30s started out with the N20 2.0-liter engine in 2012 and this engine was the only four-cylinder gas engine until the 2016 model year, when the 328i became the 330i and, in the process, lost its N20 engine in exchange for the then-brand-new B48 engine, still displacing two liters and with slightly higher outputs. However, the confusion comes in with the 320i, which retained the old N20 engine from 2016 onward, even though some sources insist that it also received the new B48 engine. A quick look under the hood appears to confirm that these sources are wrong and it is easy enough to distinguish the N20 from the B48. The N20's plastic engine cover has two cut-outs at its front end facing the nose of the car. If you're standing in front of the car with the hood open, looking rearward, the left cut-out is for the oil-filler cap and the one on the right for the oil filter. It also has a smaller plastic cover between the engine and the radiator which juts out noticeably in the center where it attaches to the front cross member close to the front bumper seal. The B48 engine looks quite different, with a more rounded and uniformly shaped main engine cover lacking the two cut-outs. The additional cover between the engine and radiator is also much larger, taking up almost the entire space, for a much more enclosed appearance. All this is quite important because the one to be wary of is the N20. The most common of the N20 engine problems is with the timing chain; in fact, almost all of the N20-engined models have known timing chain problems and issues.
The plastic timing-chain guides wear out prematurely and the chain starts making a whining sound when the engine is running, soon damaging the chain and requiring the entire timing-chain kit to be replaced. If ignored, the chain can fail and ruin the engine. This problem afflicts N20 engines up to 2015 and engines before that should be fitted with updated and improved parts to prevent the problem from happening. Some N20-equipped BMWs received extended seven-year/70,000-mile warranties, so either check the VIN to see whether a vehicle qualifies or make sure the pre-2015 N20 you're looking at has been fitted with the updated parts, with proof of the work having been done by BMW. With the timing chain sorted, the N20 is quite reliable, but it still suffers from oil leaks from the valve cover and oil filter housing, like most BMWs of this era. Vanos failure is also expected every 70,000 miles or so.
In terms of the N47 diesel engine, most of the timing-chain comments apply as well and these are often due to oil-change intervals being stretched out too far, but as this was a rare and unpopular model, avoid it altogether, because engine parts will also be scarcer and more expensive.
Mileage: Chain-guide failure from 50,000 miles, oil-filter-housing leaks from 60,000 miles, and valve-cover leaks start between 50,000 and 100,000 miles.
Cost: $1,500 for parts and labor to replace the timing-chain kit at an independent shop and double that amount at BMW; the parts for a valve-cover replacement are around $400 ($450 on the six-cylinder N55) and around $400 labor; an $800 job to replace the oil filter housing; $300-$400 to replace the Vanos solenoids.
How to spot: Failing chain guides will cause the chain to whine audibly or emit a grinding noise; valve-cover and oil-filter-housing leaks will leave visible traces of oil, even on the floor, and emit a burnt-oil smell and even some smoke when dripping on hot engine parts.