So where is the OBD Plug on a 1996 BMW Z3. At first I thought it was under the hood which is true if you are an authorized BMW dealer and you use the plug in your BMW Shop. The plug then is located under the hood as shown in the picture below. BUT if you are a DIYer you need the plug for the OBD II connection and it is located on the passenger side on the kick panel on the left side.
OBD Plug 1996 BMW Z3
If you see in the picture below it shows that the plug has a cover on it that says "OBD" once you remove the cover you see the OBD Plug and the plug has a cover on it as well which is easily removed to expose the plug and allow you to read the codes from your car. See this resource online for OBD codes. Also this is the location for the OBD Plug on a 1996 BMW Z3. Yours may be in a different location HOWEVER I read that it should be never more that 2 ft from the drivers seat.