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Inspection 2... approx. $400 to $900 depending on where you go and what area you are in. A dealer will be noticeable more expensive than a local mechanic, but there are also some benefits and disadvantages to both that I will not get into.

It is an oil service, replacement of air filter and microfilter, a series of check overs and adjustments.

Compared to "older" BMWs, it is a rip off for several reasons.
-spark plugs are no longer replaced at this service (they are good to 100k)
-transmission is not serviced
-differential is serviced at every second Inspection 2 (approx 120k)
-fuel filter is of long life design

In other words, if you look in your service booklet, you will see the only item on the E46 that differentiates the Inspection 1 from the Inspection 2 is the air filter replacement. On the older cars, there was a host of repairs/services done (listed above), so the price increase was justified. The dealers/mechanics have not caught on that no extra work is required on the newer cars, so they have not adjusted the labor charges. It is foolish to pay more for an Inspection 2 than an Inspection 1 becasue the only other job is the air filter replacement (ok so I'll give them an extra tenth of an hour labor for that) It makes more financial sense to just have them do an Inspection 1 and then change the air filter yourself. Voila... instant (and noticeable) savings.
 
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