X5 35 Diesel deal
 

Just signed that papers last night to start production on my new X5 with PCD at the end of May! I think I got a good deal but I wanted to check on here to see what you guys think...

35d
Space Gray
Sport Package
Blk Nevada Leather
Heated Seats
Tow Hitch

All in price with $825 destination, $300 MACO, $180 training, & $400 doc fee = $55,715

What was your discount compared to the MSRP and the options.

Did you negotiated a set amount?

What's training and MACO.
I think doc fee was 200 for me but had admin fee of 250.

Discount from MSRP was $4,070.

I'm not really sure what training and MACO are but they seem to be standard fees totaling $480.

I don't get all of these "fees". When I buy a car I tell the dealer I won't pay them. If they don't want the deal they are free to says o. I've had a few dealers balk, but I've never had one walk away from a deal over the issue.

Hey, doing the best deal you can get when you buy a vehicle is an American tradition, but some of those fees are actual costs to the dealer. The $300 MACO and the $180 training fees are actual charges from BMW NA to the dealer and is charged on a per vehicle basis, i.e., if the dealers sells one more vehicle, he pays BMW NA $480 more, if the dealer sells one less vehicle, he pays BMW NA $480 less each year.

Now, the Documentation fees are mostly junk and pure dealer profit. It varies by state, but I suspect the typical incremental out-of-pocket cost to the dealer for documentation is less than $50.

So again, get the best deal you can get, but realize the MACO and Training Fees are incremental out-of-pocket costs to the dealer, while the DOC fees are mostly just a junk fee to squeeze more profit out of the customer.

That's a very good discount for the diesel.

I negotiated $2K off MSRP but I don't remember paying MACO or training fees and doc fee was 200 or less.

Although, this was back in December when the 35d just release for production and the 35d was hot item, discount was unheard of...
I remember most people reported paying $1-2K over invoice/msrp.

I would think MACO and training fees would be out of the dealer profit and should not be passed on to the buyer. I have never paid them on any cars I have bought, but then because you are getting a pretty good discount, that's why the dealer may be charging you for the same.

> I would think MACO and training fees would be out of the dealer profit and should not be passed on to the buyer.


At the end of the day, all costs get passed along to the buyer, one just argues with the salesman about how they are going to be written down on the paper.

The dealer has a price in his mind at which he will be willing to sell the vehicle. When he figures that price, he adds the incremental/variable cost of the MACO and training fees into it. He probably only puts $50 of the doc fee into it, as that's his variable cost.

So make the best deal you can, and if you feel better having him bump the price $480 and then not charge you the MACO and Training Fees, go for it. But one way or another the dealer will include his variable costs in his bottomline acceptable price.

Now, when it comes to his fixed expenses, that's entirely different.

I had to pay them when I purchase (10/2008) my 535 at $1,000 over cost.

I got mine for 1000.00 over invoice. I paid the 180.00 training fee, but not MACO.
The training sends the dealers mechanics to school to work on the vehicles...

Craig