Have you tried turning the steering wheel just a little. Sometimes it's pressing against the lock mechanism hard enough to keep it from unlocking.
The same thing happens in cars with regular keys, the key won't turn because the steering wheel lock mechanism is pressing to hard.
Just move the steering wheel about 1/8 inch in which ever direction it will turn. Then, while holding the steering wheel (it will resist), try starting the car.
If you are still under warranty, BMW's roadside assistance will tow it for you. Otherwise you are pretty much hosed. If that steering column lock indicator is red, the car thinks you can't turn the wheel because the electronic steering wheel column lock has malfunctioned. I have had mine replaced 2x on my 07 335i. I was lucky enough that the icon was yellow and the car was able to start/drive with no issues so I could get it to the dealer. The first time they just did a software update, the second they replaced the whole steering column. I feel for ya, that is not a cheap repair if you are out of warranty. You could try an indy shop if it is closer. G/L!
Sorry to be off topic, but I have an '06 325i and
I know there is newer software for the non-iDrive cars (noticed that you can customize additional stuff, such as which doors to unlock through the fob). Do you know if it is offered on older cars (such as mine)?:dunno:
its yellow steering lock and the car is still not turning on... No warranty here either!
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