My X5 didn't have a tow package from BMW, or dealer.
My friend that found/restored the X5 for me (major mech and electrical stuff), had found it w/o a tow hitch. While working on suspension, he installed a
Draw-Tite Class IV custom hitch.
Background history of how I traded for the X5
Because I originally wanted to be able to take my home-built trailer off-road. I thought of using either a 4WD JEEP (XJ-Cherokee/Wagoneer (Unibody only) 1996 – 2001, WJ – Grand Cherokee 1999 – 2004, ZJ – Grand Cherokee 1996 – 1998), because I never had a Jeep before, and my two trucks are 2WD, or alternately a 4WD Chevy Suburban (1996-2001, being a primarily Chevy truck guy).
As you can see, I specified OBD2 years, to be able to diagnose more easily, and I was tired of dealing with finicky carburetors, etc., from many years of drag-racing.
He had found a '89 Grand Cherokee (not an OBD2 candidate), in fair-poor condition, that became another project for him, and as time passed, I waffled on the off-road specification, and asked for an AWD soft-roading vehicle, that could be a back-up tow vehicle, or used as occasional/bad-weather/special event transportation. My preferences were a first gen BMW X5 E53 (2001-on, never buy the first year of production), a MB ML320 (a guy at work had one), or a full-time AWD Jeep WJ. That's when he found the X5, and began working on it.
Since my trailer is 2222 lbs, with brakes, I could tow it with the BMW, since he overhauled cooling, Vanos, transfer case, etc., but I probably won't. At 70, I'll probably not even go semi-off-road, and my '04 Chevy 2500HD has been outfitted with all my extra gear for camping/whatever, already. I'll just use the X5 for short-distance, localized activities with the wife (I camp alone).