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How do you reset alarm code on 1996 BMW z3?

Here is how you reset the alarm code on a 1996 BMW Z3:

1. Turn ON your car's ignition.

2. Within five seconds of turning the ignition ON, press and hold either the "Radio" or "RDS" button on your radio for approximately five to ten seconds until you hear a beep or the alarm disables itself.

That's it. The alarm is reset and you should be good to go.