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On my 88 (basically the same car) I had the SAME problem. Turned out to be a broken solder in the DME Unit. Note, this is in the actual computer, not the DME relay. I'll try and find the thread on my problem (maybe search under "88911coupe") and there are a lot of explanations from helpful Pelicanheads on how to find it. Try to avoid paying $1,600 for a new one!
Good Luck
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Buck
'88 Coupe, '87 Cab,
'88 535i sold, '19 GLC 300 DD
Warren Hall, gone but not forgotten
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