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there are a number of options when it comes to replacing the master and valet keys on the X5, at least on the older ones (00-06). You can buy them from the dealer (providing you have an open slot left in the ews), you can buy them from a local locksmith who specializes in electronic automotive keys (this is what I do for a living), you can buy them from a mail order source .. that will normally be less than a local locksmith because they won't have to come to your house or POE to provide the labor to pull the EWS and can normally do the job as "filler" work at a quiet point in their day.
I just purchased a 2001 X5 last week and have been busy "cleaning it up" -- replaced a faulty door latch, 2 handle carriers, washer fluid pumps, window regulator......and in the next few day Im replacing the entire sunroof assembly. However before I did any of that the first thing I did was rekey the door and ignition cylinders and scrub all the key data out of the EWS unit to ensure that I was the only one who had working keys to the vehicle. Changing the mechanical cuts on the locks ensured that no one else can order a key from a BMW dealer based off the vin and an old registration.......which I've seen happen.
IF you order keys from anyone other than the dealer there are a few things to keep in mind(for those who don't know). BMW limits you to 10 total keys over the lifetime of the vehicle. the keys are stored in "slots" in the EWS unit. As long as you have an empty slot you can order a key from the dealer. It is possible to over write slots with the right equipment and eliminate that 10 key rule but thats not possible through the dealer. If you mail order any services THIS IS IMPORTANT .......IF you take your vehicle to BMW for service after having someone write keys into your EWS the dealer will be able to tell (bmw tracks every slot in every car they issue a key to) and in a number of cases throughout the country these "aftermarket" keys have been declared "unauthorized" by BMW and have been erased from the vehicles memory by the service dept. If that happens to be your only key you are hosed. This is only an issue if you ever take your vehicle into a dealership for service, and is easily avoidable --- just make sure whoever is doing the EWS work knows to use an existing or "issued" slot for your keys and you're likely ok.
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