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This is easier to locate than on most cars. The oil filter is located on top of the engine, so you don't have to go crawling around the backside of the engine. The oil filter has a plastic cap. It isn't one of those metal cased screw off/on type filters. The filter just looks like a big cone fuel filter and it is inside the filter cap. You have to unscrew the filter cap using either the correct tool purchased from BMW, or in my case, I use a rubber clamp wrench (a bigger version of the type you use to take lids off jars).
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