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you can buy a reset tool or you may improvise and use a wire and locate pin 7 in your diagnostic connector and the other end connect it to pin 19 but you need to turn the key in the ignition first without starting the engine and you need to time it.it should only last for 4 secs from the moment you connected the 2 pins otherwise if it's about 12 secs it will reset inspection interval service light. it may sound funny but i just did it on my BMW 320i 1988 exact model as what you have.
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