I HAD NOTICED A MELTING PLASTIC SMELL FOR A FEW WEEKS BUT COULDN'T IDENTIFY THE SOURCE AND SHORTLY AFTER THIS MY HEADLIGHT BURNT OUT SO I WENT TO REPLACE THE BULB. BY THIS TIME, I NOTICED SMOKE COMING OUT OF MY HEADLIGHT MOUNT. UPON OPENING THE HEADLIGHT I NOTICED ALL OF THE WIRE SHIELDING HAD FALLEN OFF OF THE WIRES INSIDE THE HEADLIGHT MOUNT, CAUSING THE WIRES TO ARK AND MELT. UPON COMPARING AGAINST THE OTHER HEADLIGHT, I FOUND THE SAME THING- ALL OF THE WIRE SHIELDING HAD FALLEN OFF. I WENT TO THE DEALER AND WAS TOLD THAT THIS HAPPENS ALL THE TIME, SIMPLY DUE TO HOW HOT AND DRY THIS MODEL GETS UNDER THE HOOD AND THE HEADLIGHTS BEING SEALED. THEY SAID IT'S USUALLY COVERED BY THE EXTENDED WARRANTY, HOWEVER NOT IN THE CASE OF MY VEHICLE'S MILEAGE. SINCE THE HEADLIGHT IS A SEALED UNIT, YOU CANNOT ACCESS THE WIRES TO REPLACE THEM AND CANNOT PURCHASE A HARNESS, THE WHOLE UNIT MUST BE REPLACED AT A COST OF $800 EACH. I GOOGLED AND FOUND SEVERAL COMPLAINTS OF THE SAME ISSUE. UPON CONTACTING BMW HQ DIRECTLY, THEY SAID IT IS A KNOWN ISSUE, BUT NOT COVERED, AND GOT BACK TO ME SEVERAL WEEKS LATER OFFERING TO PAY $200 TOWARD THE COST OF THE $1600 REPAIR IF I HAD IT DONE AT THE DEALER, OR $2000 TOWARD THE PURCHASE OF A NEW BMW. *TR