Thanks Slick. I know that BMW uses galvanized metal sheet. I assume when using hammer I should expect rust eventually.
I will got today get some estimates around here. One guy mentioned about $2500 to get it fixed though...

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4.8is 2004 imola red
4.8is 2005 Black on Black - DINAN/2 sold
4.4 2004 X5
2003 330xi
2008 328xi - sold
4.4 2000 X5 - sold