Major repair on 01 X5

[ogx5]

Hi,

Last weekend I heard a thump while driving the X5 and thought nothing about it. Later at a junction when the traffic light turned green I stepped on the pedal lightly, all of a sudden I heard a loud bang and thought someone rear-end the X. The X lost momentum and I was lucky to cross the junction and stopped at the shoulder without anyone hitting me.

Long story short, the X wouldn't move forward or reverse even if I stepped on the pedal. Had it towed to dealership and was told the transfer case and front axle need replacement, and its about $4K.

The X has less than 70K miles on it, has anyone experienced the same? Can I put on a argument that this is a defect given relatively low mileage? I don't drive it aggressively nor do I do off-road...

Thanks for your input,
Ken