If its not on a flat bed it was towed wrong. Call the tow company right away.

Sorry hear that. Sounds like the tow company owes you a transfer case.

Tow driver should know better, but did you request a flatbed for tow? Where you there when the driver came?

Anyway, sounds like you have a case. GL.

When I called the tow truck company, they asked for the make and model of my car. They came an hour and a half later and towed my car to the dealership. I was in the passenger seat in the tow truck. The driver never asked me about the towing procedure. I was unaware of the correct way to tow the X5 until I came to this forum. How far does it have to be towed for the vehicle's transfer case to go out? BMW said the actual transmission is in perfect shape... are their any other reasons that the transmission wouldn't catch?

Isn't the 4x4 system ''kaput'', not the tranny ?

The towing company / driver should have known better, but it is altimately the owner that should be looking out for his vehicle's well being. Sort of like you and your doctor, you have to participate in your health care.

I think it's standard procedure for all BMW vehicles to be towed only on a flatbed tow truck. All the owner's manuals, regardless of the type of drive system, have pictures of what right and wrong towing look like.

This should be a reminder for folks to read the owner's manual and get to know their equipment. I know I'll be reviewing the manual again to refresh my memory.

Thank you for sharing your story. Hope everything works out for you.

Page 177 in the manual says.

With Tow Truck:
Do not tow the X5 with the front or rear axle raised individually, other-wise the wheels may lock and the transfer case may be damaged.
The X5 may only be transported on a flat bed.

Goodluck again!

NEVER, with any vehicle, take it to Sears!!! I used to work for them years ago (not in automotive) and the guys that worked there were useless - they were always having customer complaints. Think about it - why would a good mechanic/ auto tech work there instead of a dealer or indy shop??

With that said, any competent tow truck driver should know an all-wheel drive vehicle requires towing on a flatbed - looks like they are the ones you need to go after, although Sears has some responsibility here bc if they had done the job correctly in the first place, you would not have had to tow the vehicle.