There are A LOT of posts here and on bimmerfest about this...
The BMW SIB says 2.5 hours. You should hold the dealer to 2.5 hours.
You are correct that the '525 kit already includes the 'electrical kit'. Take 199 off
The are also double dipping on the cap, '882, so a big $6.80 off.
HOWEVER, I dont see them pricing in the 82-11-0-420-082, the Electric Brake Controller.
If they are saying $1400 for the hitch, the electrics AND the brake controller wired up to the dash, that is probably an OK price.
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Note: the detailed post on the install of the controller says "1.25 hours"...hence 2.5+1.25= 3.75...
My WAG:
500 for the kit
38 ball receiver
19 trim kit
225?? Brake Controller 82110420082
782 total
3.75 @ 140(?) = 525
1307 'out the door'
Let me ask- WHO are you speaking to? The salesmen there? They are idiots and thieves. Trick is to call and speak to a SERVICE ADVISOR. Or drop in. With the two SIB/instructions printed, and you own list (ie my list of parts and hours above) and say "I need the installed, these are your prices- can you do it for the labor BMW publishes?"
I assume you are a gal (Joy)...that $3000+ price is repugnant. The salesrep getting impatient is also annoying.
Again, dont talk to salesmen- go to the service guys.
If you do go forward MAKE SURE the document you sign to start the job has PRECISELY on it what you want. "Hitch. Electrical wiring kit. Electric brake CONTROLLER. Trim panel, receiver" DO NOT let them verbally say one thing and leave stuff off- dont let them steamroll you and make it seem like you dont know what you are saying. I can see them saying 'yes the electric includes the ebc, so we dont need to add that'... you response should be "well then, it doesnt mater in that case- indulge me"
Report back, ask questions.