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My ambient temp guage seems to register awfully hot, which I suppose is from engine heat collecting. I've seen this happen on older cars, but thought it might be corrected on something newer. I was wondering, does this happen to everyone, or should I replace the sensor.
 

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Mine is always about 5 degrees warmer than what WTOP says the actual temperature is.
 

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Mine does the same

I have the same problem with mine in an 03 540. When the car starts cold the temp reading is usually accurate, after driving for a few minutes it goes up to 122. I took it to the dealership and they said this was normal. such BS. I'm going to try another dealership. If any of you have found a resolution please let us know...
 

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The temp sensor is located on the bottom panel behind the passenger foglight, about 8" above the road surface.

Being located where it is, it will read the air temp appox. 8" above the asphalt which get's pretty damn hot in the summer months...
 

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I have the opposite problem. The temp sensor on my car displays 34 on cold starts. The car is garaged and there is no way it's 34 degrees in the garage. It'll warm up to normal then drop dramatically to 34 again. It doesn't go up to 100+.

Software or Hardware problem? or neither?
 
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