There's a tool that's sold by many aftermarket catalogs for this purpose (there's usually an ad in the back of Road & Track).
If you're interested in doing it without the tool, there's good directions on the unofficial BMW site (www.unofficialbmw.com). Just do a search on "service lights"
Here is a place that sells the tools. Very easy to deal with. Were prompt and courteous with me. http://www.bimmertoys.com/
Hope that helps out. Btw, don't ever take it to the dealership to get the stupid light turned off. Even if you don't buy the tool you can find someone to do it cheaper than the dealer. Believe it or not people the dealer isn't GOD. God is much smarter and alot easier to deal with.
If you want to reset your service indicator, jus tkey the ignition over until the service lights come on in the dash, then take the diagnostic connector cover off and ground pin 7 to the chassis (hold it there for about 5 sec.). When you check the indicators again, should be all green again.
I think that was an excellent question. And, eventhough you have a faily expensive car, it does not give the dealer the right to bone you for an $80 oil change when you could either easily either do it yourself or bring it to a trusted sevice center. BMW obviously has put the switch in for that reason.
Any tools to reset service light for 2002 BMW 318i
The service light reset tool sold by peakeresearch.com and bimmertoys can only be used for BMW until 1999. Are there any other cheap tools for new BMWs?
There is a web page at http://www.unofficialbmw.com/repair_faqs/sil.html that gives you step by step and a picture of the pins so you don't pick the wrong one. Just used it and it worked GREAT! :sun:
The unofficial website has not been updated for a long time. There are no new updates after 1999. The picking of pin 7 is meant for BMW's before 1999. I believe it'll be different for 2002 BMW 318i valvetronic engine. That is why the service light reset tools by peakeresearch.com and bimmertoys can only reset for cars until 1999..
Grounding to the chassis is also equivalent to pin 19 in the data link connector. So, all you need to do is turn the ignition to Acc, use a paperclip to short pins 7 and 19 for 5 seconds, remove the paperclip, and turn off the ignition. Turn on the ignition again and you will see all green bars
It explains how to reset the lights on 1999 and on E39, probably it's the same on the 1999 and newer E46. But use at your own risk I haven't used it yet.