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The overdrive relay is located in back of the fuse box which is behind the ashtray.
i have a 1989 740 and mine is located on under the hood it the green 1 on the side next to the air filter
behind the glove In the relay/fuse panel behind the ashtray. After you remove the ashtray and holder you will need to remove the box above it to access the relay
pull out ashtray and lighter- realys are behind ashtray
http://www.brickboard.com/FAQ/700-900/ElectricalCircuitsRelays.htm#RelayLocations
Behind the ashtray is where it is located. You will need to remove the box above the ashtray to gain access to the relay as you can't slide the fuse/relay panel out otherwise. BTW if the car is an automatic the relay is white and sits on the left side of the panel
Remove the ashtray. Then lift up and out on the tab labeled "Fuse Box"
In front of the battery, directly behind the headlights on the passenger side. Follow the wires from the fan switch on the top of the radiator.
in the center console, under the Radio
Take your ashtray out, the relays are back up under there.
allows power distribution to the overdrive solenoid for overdrive engagement.
They are at the back behind the ashtray, look in the gap at the top of the fuses.