It's a bi-xenon headlamp. What that means is instead of a 2nd bulb or filament, it uses a shutter to block part of the light on low beam. Then the shutter is moved out of the way (electric plunger inside the assembly) and you have full light for highbeam.

Unless you feel comfortable with cutting off the outer lens and replacing the lens with a new one after figuring out how to repair or replace the plunger. Then the dealer is correct and you would have to replace the assembly. Maybe you can find someone nearer to you than the US that is parting out an X5 and you can pay far less for the headlight and replace it yourself.

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'01 740i Sport MKIV, Quad Brake Lights, Bi-Xenon retrofit, HID Fogs Dinan 7 Struts, Springs, camber plates, Intake, MAF, CAI, Throttle Body, NBT Retrofit, Strong Strut


'99 318ti Titanium Silver; '97 318ti Boston Green; '13 X5 3.5i Saphire Black Metallic
'84 633csi Black (sold); '88 325iC Black (sold); '97 740iL Black(sold); '01 740iS Black (sold);'97 318ti White (sold); '08 X5 4.8i Titanium Silver (sold); '96 318ti Alaska Blue (sold)