$500 is fair. They really don't make much on the cars these days, mostly service.
Yes, they get some manufacturer incentives, CPI money and bank/lease spiffs - but that probably doesn't do a lot more than cover the huge, expensive showrooms that are becoming commonplace, especially with BMW, Mercedes, etc.
My local dealer, Herb Chambers BMW of Sudbury (20 minutes west of Boston) is over 70,000 square feet with a television lounge and multiple LCD, TVs and a working fireplace, children’s play area complete with lots of toys, nice sales lounges, a (free!) Starbucks quality coffee bar and café run by a 19 year old who looks like a model, an outdoor patio and a business center.
I have to be honest, while I was frustrated having to take my 535i in over and over for the HPFP issues, it was a very pleasant place to hang out
