Visit www.bimmernav.com. There you will find a most excellent Blueooth solution for relatively low cost. The dealer quote is way too high.

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SOLD
2000 E38 750iL Highline Edition, Upgraded with the lastest 2006 X5 Electronics
MKIV Navigation, 16:9 Display, Bluetooth, TV/Video with Backup Camera, Sirius, and Aux Input