I have a '01 3.0 and I installed the OEM hitch and then the Tekonsha (spelling?) Prodigy controller. I have about a 3500 lb boat and it tows like a dream. But the trailer brakes are a must! It was a bit of work to do the wiring for the trailer brake controller (lots of info on this site that I used to do install) but it's a worthwhile investment. I also talked with my independent BMW service manager (whose been in business for 20+ years here) and they've not seen transmission failures with X5's or the 3 series. Our 2000 323i w/Steptronic and 100k on it still drives like a dream.