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German Manufacturers are tricky. I own a 89 myself and figuring out this car is a challenge. The newer models of the BMW mostly have two filters one in the engine compartment and another nea the fuel tank but these old models unfortunately have one. It's located on the driver side right under the back passenger seat(not inside the vehicle) in front of the left back tire. There's a flap covering it but it's easily accessible. It's a silver cylinder connected to two lines.

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12y ago
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Q: Where is the fuel filter for a 1989 BMW 325i?
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