From the factory, the '03s are aux "capable", but before you can utilize it, there's some part that your dealer needs to install.
From other things I've heard, essentially what the dealer does is tap into the factory harness behind the head unit and create RCA ins accessible around the head unit/glove box.
I called my dealer to see if this mythical part works with '02, and he said no, but also said that's all he knows -- he has no idea what the part is and doesn't know when it's coming in. Then again, that was a couple months ago, so check with your dealer.
The kit is available and is a direct plug-in. THere is no need to tap into the harness. Only '03 models have the extra jack behind the radio. The input port is a stereo connector and does not seem to be an RCA. Not sure how an RCA would work as an Aux-IN? This looks like a real easy install and really cheap for a BMW acc. Here is a link of a thread discussing it and pics.
3Wagon, not to rain on your parade, but even when the adapter comes out, there still may be an issue. On older cars, some people have added iPods/MP3 players, etc. by hacking into the factory harness on the head unit, tapping into the tape deck output.
When they've done this, the output of the MP3 player or whatever comes out, but at a very low level. As such, some have added line-drivers (in-line signal amplifiers) to boost the signal to the headunit.
I hope that BMW has addressed this issue with '03 adapter, but we'll see.
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