Vehicle 'record' question

From owning a couple of BMWs, my understanding is that the service history of a vehicle (at least the service history at any BMW dealership) can be pulled from the key of the vehicle. A BMW SA tells me only info related to warranty is stored and can be pulled up on the key. I would assume that all service history would be pulled.

I ask this question as I am considered having the collision center associated with a BMW dealership do some bodywork (replace fender - my goof with the garage door) on my 2012 X5. I realize that if I go through insurance, the work may show up on Carfax. However, I'm wondering even if I pay out of pocket, will the work be associated with the VIN such that it can be pulled up with the key (by anyone who can read the key) at a future date.

Thanks for any constructive input!