Need help on purchasing a Reset tool for SRS and Check Engine light. I think I have a bad gas cap for the check engine.

What's your budget? The best bang for your buck is to get an older laptop with a serial port and install INPA. You'll need an ADS interface to make it all work. Total cost should be about $ 150 or less. You'll end up with a very robust tool that can be expanded (at almost zero cost) to work with almost any BMW.

Get yourself a C110 code reader. Cost is low and they work very well. I've used the C110 with success on a couple vehicles now. It WILL read E36 / E34 OBD1 with varied / mostly success. It's chinabay crap, so it connects to the OBD1 stuff probably ~ 80% of the time, but thats really good enough for me.

All e36s have the round 20 pin port in the engine bay. Does not matter where you live. This port can access all modules in the car. This includes the engine, ABS, auto tranny, srs, and all others. Programming and coding is done through this port. European e36s did not become OBD II compliant until 98 or 99.

The round port uses OBD I protocol. The scanner is using OBD II protocol. It's like English and Russian. There is software available that will allow you to use both ports with a single program. BMW INPA is one. BMW C110 is another. They have to be configured correctly to use both ports and you need the correct cables to make it all work.

Someone said C110 code reader will not connect to the 20 pin diagnostic port in the engine bay it will not clear airbag codes in an e36. It's not true, go to buy an adapter for less than $ 10 and it will clear air bag codes all day ... (worked for me) The one in the pic is $ 7.99 on plus free shipping.

I use the B800 tool for the airbags, and an ELM327 / Torque for engine codes.

These two devices have done their jobs well for me. Both can be bought for about $ 50 total (minus an android device to install torque on).