530i Outside Temperature Indicator Malfunction? Ext Warrantees?

Just purchased a 2002 530i and the outside temperature indicator reads temperatures as much as 10 degrees higher than the actual outside temperature. Is my sensor bad, or is this a design problem on the 530i? A
friend who works in service at a BMW dealer (not where I bought the car) suggested that the sensor is too close to the hot pavement and they all read too hot on summer days. The car is still under the BMW 4 year/50,000 mile factory warrantee for another 3,000 miles.
One other question: Before the factory warrantee runs out, I am considering buying an extended warrantee, perhaps from Warrantee Direct (so that I could take the car to a good local (non-BMW Dealer) shop I've used for my out of warrantee Audi for the past 7 years). Anyone have any comments or advice on buying such an extended warrantee just before the factory warrantee ends? It appears a 100,000 mile/4 year contract is about $2,800 that is similar the the original factory warrantee.
Thanks. Love my new bimmer!
Larus
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Although the temp may indeed read high when first started, it is unusual for it to not read correctly after being on the move for a few minutes at 25mph or greater. Have the sensor replaced if this is not the case: all the sensors are quite accurate IME. Sitting in heavy traffic is the only place I have seen high readings; mostly due to exhaust from cars, high pavement temps and backwash from engine or a/c fans.

YMMV, but extended warrantees generally only benefit the seller. I didn't buy one for my '01 330xi, but then I don't have an automatic that could fail, either.

There's just something about fine machines, isn't there!?
FloydR
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The sensor is supposed to live in an air duct that directs air to the brakes. If there has been recent brake work, the ducting may have been removed, and the sensor may have been taken out and laid over a suspension component too near the engine.
The temp sensor is generally a very reliable item, and if it is mounted in the right place, then it should be giving an accurate reading of the actual conditions.

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