Easy, you can fix that one. I think the tire company wants to sell you a new tire. I'd say put a patch in it from the inside and you'll be fine. The tire also has steel belts in it and really, if you had pierced the sidewall, then I'd say you need to scrap the tire. From the pic about, your close but still safe in my opinion. You could put a plug into it but for for more peace of mind, put a patch from the inside.

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SOLD - 08 X5 (Titanium Silver w/Black Nevada with all options).