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I have installed a lot of aftermarket hitches, on many different vehicles, for myself and for customers. I have installed two BMW hitches, on an E53 and an E83.
While the OE hitches are well made, the deciding factor for me is the fact that neither the E53 or E83 have a frame. If it was a truck with two frame rails, any hitch would do fine. For these vehicles, the devil is in the details, and in how the hitch attaches to the unibody. For the E53, there have been damaged unibody structures from aftermarket hitches. I have posted quite a few details on the E53 board. For the E53, I would only use an OE hitch. As a bonus, when purchased with the electrical kit, they both end up being cheaper.
When I came to the E83 hitch a few years later, I found that it was cheaper than the E53 version, so I figured I was already ahead, and just purchased it. About $320 sounds right for the E83. E53 was closer to $600.
Installation was very smooth. Typical German overengineering. If I knew that an aftermarket hitch used an identical mounting arrangement, I would be prepared to install one. But since I don't, I would go with the OE hitch.
I rode my bike past a parked Subaru wagon/crossover yesterday. It had an aftermarket hitch installed, and a fairly light fold-up two-bike rack. The rack was pointing to the ground, about a 30 degree angle of declination. I checked, and so was the receiver, same angle. Looked pretty sad. I'll bet it was the unibody that bent, not the hitch receiver.
I would be even less likely to use an aftermarket wiring connection. BMW wiring has enough problems without introducing third party components. With the BMW tow module and harness, the rear PDC is turned off when a trailer is connected. No annoying beeping every time you back up. Also, DSC gets another mode called Trailer Stability Control, which counteracts sway. Not sure about applicability to your model year, but mine had it, same with my 2003 X5. Worth checking. Nice feature to have, particularly with the relatively low vehicle weight. Finally, no wire taps means less chances of errors in the lighting control module, like bulb out warnings.
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2007 X3 3.0si, 6 MT, Premium, White
Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue
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