The dealer price is high for a DSP amp replacement, but not totally out of line. DSP amps retail at most dealers for around $1,300. However, BMW dealers that discount sell them for only $1,100. Installation only takes about an hour, but I would not be surprised if most dealers charge 2 hours labor for installation and coding.

However... you can easily do the replacement yourself and worst case pay a dealer for 1 hour of labor to code it.

Here's an eBay search that does a pretty good job finding DSP amps. You can use any amp made by either Loewe or Lear. BMW used the same parts in the E38 7 Series, E39 5 Series, and X5. They are 100% interchangeable with only coding differences. If the amp came from a car just like yours (X5 without navigation), then you could install it without any coding. Expect to pay somewhere around $75 - $150 for a used amp on eBay.

bmw amp dsp, digital, e38, e39, x5, 740 , 750 -e32, eBay Motors, Electronics items on eBay.com

Good luck,
Brian

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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