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MajorCommonTransmission

BMW X5: Transfer Case ATC Chain Stretch and Bearing Failure

Transfer Case ATC Chain Stretch and Bearing Failure is a common transmission fault on the BMW X5 on the 1999–2013 cars, and we rate it major. Putting it right costs $2,500 to $6,000 at New Zealand independent workshop rates. Below is what goes wrong, the symptoms to notice on a test drive, where to look, and what to ask the seller before you hand over any money. It is one of 41 documented faults on the BMW X5.

Vehicle
BMW X5
Only on
AMG
Years
1999–2013
Gearbox
auto
System
Transmission

This page covers the BMW X5 as a model. Some faults only affect particular engines or build years — enter a plate below to narrow the list to one car.

All BMW X5 faults41 documented faults on this model

What you are looking at

The front of a dual overhead camshaft engine with the timing cover removed, exposing the timing chain and sprockets.Example of the part — not this vehicle

The front of a twin-cam engine with the timing cover off — chain, sprockets and guides.

Logansenf · CC BY-SA 4.0 · Wikimedia Commons

What goes wrong

Both the E53 and E70 X5 use an Active Transfer Case (ATC 400 on E53, ATC 500 on E70) with an internal chain drive for the xDrive or All-Wheel-Drive system. The chain stretches over time and with neglected fluid changes, leading to vibration, noise and eventual failure of the electromagnetic clutch pack. The integrated fluid lubricating the chain and bearings degrades into a sludge that accelerates wear. BMW specifies a transfer case fluid change interval that is frequently missed in service history. Complete transfer case replacement is expensive.

What you would notice

  • Vibration or shudder felt through the drivetrain at highway speeds
  • Grinding or whining noise from the centre of the vehicle under load
  • Four-wheel-drive or DSC fault lights on dashboard
  • Difficulty engaging or disengaging AWD, or loss of drive to one axle

How to check it

Where to look. Transfer case mounted to rear of main gearbox, underside of vehicle

  1. Check service history for transfer case fluid changes — ideally every 60,000 km.

  2. During a test drive, listen for drivetrain vibration or whining at varying speeds.

  3. Check the transfer case unit from underneath for oil leaks around the seals and for magnetic drain plug debris.

  4. Scan the vehicle for DSC or AWD fault codes that reference the transfer case.

Parts involved: Timing chain, Transfer case.

What it costs to put right

$2,500 to $6,000 at New Zealand independent workshop rates. That is for this job on its own, not for the car.

An estimate, in NZD, for the repair as normally carried out. What a specific car costs depends on which part has failed and what it damaged on the way — treat this as the floor for a negotiation, not a quote.

Ask the seller

  • “Has the transfer case fluid been changed, and when was it last done?”
  • “Has any drivetrain vibration or AWD fault been reported or repaired?”
  • “Is there any history of transfer case inspection or replacement?”

Now check the BMW X5 you are actually looking at

Everything above is true of the model, and it is free. What it does not tell you is whether THIS car has been looked after: its odometer history and whether the reading has ever gone backwards, whether there is still money owing on it, whether it has been reported stolen, how many owners it has had and what it is really worth today. That comes from the official records for that plate. Enter the plate for the free details, or get the full history and a market valuation from $13.49.

Not sure what you would be paying for? See what a full KickTyres check includes.

Where this comes from

The failure described above is documented in published sources — owner forums, technical service bulletins, recall notices and workshop write-ups — held in our fault database. The inspection instructions and the cost estimate are KickTyres’ own interpretation of them, and it is a starting point for an inspection rather than a manufacturer statement.

BMW X5 buyer questions

Is transfer case atc chain stretch and bearing failure serious on a BMW X5?

We rate it major and common on the BMW X5. Both the E53 and E70 X5 use an Active Transfer Case (ATC 400 on E53, ATC 500 on E70) with an internal chain drive for the xDrive or All-Wheel-Drive system. The chain stretches over time and with neglected fluid changes, leading to vibration, noise and eventual failure of the electromagnetic clutch pack. The integrated fluid lubricating the chain and bearings degrades into a sludge that accelerates wear. BMW specifies a transfer case fluid change interval that is frequently missed in service history. Complete transfer case replacement is expensive.

How much does it cost to fix on a BMW X5?

$2,500 to $6,000 at New Zealand independent workshop rates. That figure is for this job on its own. A car showing the symptoms on this page is usually worth either walking away from or negotiating down by at least the repair figure.

Which BMW X5 years are affected?

Our research records this fault on the 1999–2013 BMW X5. Build dates move around, especially on imported cars, so treat the range as the years to look hardest at rather than a guarantee either way. The official records tell you the exact build and first registration date for the car in front of you.

How do I check for it before I buy?

Check service history for transfer case fluid changes — ideally every 60,000 km. During a test drive, listen for drivetrain vibration or whining at varying speeds. Check the transfer case unit from underneath for oil leaks around the seals and for magnetic drain plug debris. Scan the vehicle for DSC or AWD fault codes that reference the transfer case. Look here: Transfer case mounted to rear of main gearbox, underside of vehicle