Alarm - key fob - new unit.!!!

[tjw110]

The key fob failed on my car this morning, so I opened the car with the key and the alarm went off (No surprises there) Bought a new battery, and it still didn’t work, so bought a new key fob (£42 from BMW) and took it in to get it programmed. The BMW garage then informed me that when the alarm is activated on the car (E36 M3 Cab) the unit “fails” and has to be replaced (£250). Are they having a fkin laugh?

[T-bagger]

I'm afraid they're pretty much spot on. I assume you have the 3G system (two button fob one red one grey). When the alarm control unit activates the alarm it will not allow a new fob to be programmed, for security reasons.
Where I used to work we had a slave alarm control unit that we would swap into the car (transplanting over the original receiver as that is seperate) and then program the new fob to the receiver. The customers original control unit was then refitted, which was still it panic mode, but could now be switched off.
So I'd say you needed a new control unit from somewhere. Breakers?