If that's happening, especially along with a scraping type of noise, it's probably the "clock spring" which all the connections go through to allow the steering wheel to turn. I've never had the steering wheel off the E83 but I think that might be your next step.

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1988 325is (purchased new) sold
2004 X5 3.0 2005 X3 2.5
2008 X5 3.0 (new to me)