Two problems related to transfer case have been reported for the 2005 BMW X5. The most recently reported issues are listed below.
Bang/clunk/kick - after giving gas from a rolling stop - feels like just got hit! what the hell is going on? this is not safe, my neck gets snapped back big time. I just purchased my 2005 X5 4. 4i (88k miles) and all of a sudden every time I don't stop completely from a stop sign (rolling stop or slight incline) I hear and feel this loud bang/kick/clunk after I press the gas. Seems like it's trying to find a gear or the transfer case has something wrong or rear differential? closest reference to what I am experiencing: transmission bump - bimmerfest - BMW forums or another way to describe it is that it feels like I just got rear ended by another car -- after giving it gas from a rolling stop or on an slight incline and my neck gets snapped back. Just got a " transmission fail safe error" last night, so I pulled over, stopped the engine, and started up and message went away. Wtf? seems like the transmission is suddenly not engaging? does anyone know what I should do besides trading it in before it gets worse and have to pay $$$ to fix? this is an issue for this make and model, so why isn't BMW fixing this in a recall?.
I own a 2000 BMW X5 that cost approximately $62,000. My vehicle has only 27,593 miles and needs transmission repairs totally over $8,000. I was driving on a residential street when the vehicle broke down after stopping at a stop sign. When I stepped on the gas to drive the car made a very loud high pitched screeching sound and would no longer drive. It was towed into the same dealership where I purchased the vehicle. I was told that the transfer case was bad and this caused metal splines to enter the differential and that I would need a new transfer case, drive shaft, and front differential. The warranty covered "4 years or 50,000 miles" and I had exceeded the number of years covered by the warranty. I understand that the vehicle is outside the terms covered by this warranty, but the implication made by the warranty is that the vehicle will drive for at least 50,000 miles. I am extremely disappointed that a $60,000+ vehicle can only drive 27,000 miles without a major failure. Bmv has offered to cover 50% of the repairs, which would leave over $4,000 for me to come up with to make the vehicle drivable. This repair includes two "re-manufactured" components: the trans box, and the final drive. I am extremely disappointed in the vehicle and in the manner in which this has been handled by not only BMW but by the dealership, crevier BMW, where I purchased the vehicle.