2006 BMW X3

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Originally Posted by rooflessVW
Yes there's some confusion in this thread.

'06 was the last year for the M54 in the X3 and Z4. Mechanical water pump and much easier VCG and OFHG. Everyone in here fretting about the cooling system - the only "weak link" in the M54 X3 and Z4 is the expansion tank.

Most transfer case "failures" are a failure of the plastic actuator gear. You can install an aftermarket metal gear or simply rotate the stock gear 180° to non-stripped teeth.

On a new-to-me X3, I would replace:

Oil and filter
Transmission oil and filter
Transfer case oil
Valve cover gasket
Oil filter housing gasket
Coolant reservoir

You can "overfill" the xfer case - it'll take almost a liter. Do it.

Ensure all the tires are new and rotate them to keep the tread depth even - this will help the xfer case.

Do the above, and you'll enjoy a solid car.

You are right, that year has mechanical water pump. which is big, big difference cost wise.
One thing I would add (except adaptations that were recommended already) is that using BMW TC fluid is imperative.
 
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