Basically, Fee's that the dealer add's back in for doing the paperwork it takes to sell you a car.

I'm remaining optimistic.

I guess my only comment would be this, and in response to what you posted. If you "knew" it was coming, my question would be how?

I mean, if you had heard it from other individuals who had bought there, but hadn't been told directly from you CA, I could understand the frustration and irritation. I too would have walked out. However, if in the process of ordering your vehicle and discussing details with your CA the doc fee was listed on your purchase order, or whatever else you signed to order the vehicle, then I don't know that it would be reasonable to walk out. You would, in fact, have had direct prior knowledge of that price and it should have been negotiated out before the vehicle was ordered.

I am not sure which dealer you are using, but I have just bought my second BMW from an Atlanta dealer and they have been very up front with pricing. I am well aware of what all my fees are and was informed about them up front.

Anyway, hope it all works out for you. Good luck, and hope to see pics posted soon.

J

My dealer was also up front about final pricing as I asked when I put down the deposit a month before. Looking back at my sales sheet there is a flat $45 doc fee imprinted on the document that they cannot change. They stated this to me before delivery too.
This is what I had to pay on top of the negotiated sales price:

$45 "dealers optional fee for processing application for registration and/or certificate of title, and for securing special or distinctive plates. THIS IS NOT A DMV FEE."
$4614 sales tax
$10 NYS tire recycling fee ($2.50 per tire)
$10 NYS inspection fee (new vehicle)
$169 NYS DMV Registration 2 years

I purchased a Honda and the X5 this year, and in both cases, the $299 was printed on the standard purchase agreement. I don't know if there is a legal limit in MA....cars were from different dealer groups. In MA, the dealers can now do the registration, issue plates, etc., and there is an annual fee for doing this, as well as the expense of having a trained employee.

When you purchase a car above invoice, you also have the BMW fees to pay as well, the infamous 'training and MACO (advertising) fees' ......These are included in the MSRP, so if you discount off of MSRP, you wouldn't add those fees back in .

what none of us know, are there any hidden $$ in the invoice price, that BMW can use for promotions.......domestic dealers have a 'holdback' amount that they get rebated at the end of the quarter, year, whatever, and typically goes to the dealership. I don't know what BMW does, yet if they're giving a $4,500 eco credit on the diesels, I doubt if there is much being withheld for other programs.

I'm amazed how many want to get their new BMWs for no or little profit to the dealer...while I understand the human need to feel thay need to get the best deal, the dealers have an obigation to make money, and stay in business too. Just because the economy is down, and the number of cars sold is less..the dealership's expenses haven't been reduced (outside of personnel costs associated with any force reductions).

If you didn't know what to expect before you 'ordered' your vehicle, you shouldn't be surprised when you went the the dealership yesterday. If you really want the vehicle, and you don't want to wait another 2 months for another dealer to get you one built, I'd seriously look at the opportunity cost lost to save a couple of hundred bucks on getting a different deal. Will you really feel any pain in your wallet with two or three years of driving enjoyment ?

IMHO

Diesel Guy, I hope you don't really think that when a dealer sells a vehicle for $500-1,000 over invoice, that that represents the actual profit the dealership makes. Any business where a product is sold at a price of $50-$60k +(with a supposed profit of less than 2%) simply will not survive, and in fact if it were true, who would invest in a dealership?

While I recognize the real profit center is in the shop, I don't believe this is the actual profit on the vehicle. If it were it would make more sense for the monied few who can afford the entry fee to a dealership to simply invest their money elsewhere and forego the headaches of running an automobile dealership.

I agree that tim-atl should have known before hand about this egregious charge and if he did, then that's the deal that was made and he should live up to it. On the other hand if it truly was a surprise, he did the right thing and I disagree that one should simply suck it up and bow down. My money is on the premise that the dealer most likely has a buyer waiting for a cancelled deal and willing to pay more so the car is sold no matter what.

Dealers make their money on those (some of which post here) who are not interested in negotiating down to the last dollar and either don't have the time or are unwilling to play the game and willingly to give the dealer the $2k over invoice they really want. The dealers know better than us the ratio of those that pay this premium compared to those that are focused on getting the best deal. Seasoned businessman (and woman) will readily state that in business you lose some and win some and the goal is to obviously win more than lose. Keep in mind that losing is just a lesser profit, not a real loss. It's a competitive world and there is always another avenue to pursue, so if you either don't like the deal, or feel they have no respect for you or worse yet shamefully gouge you, one has the right and the abiility to go elsewhere.

As far as doc fee goes, I would love to be able to charge someone a fee because they purchased something from my company. It's a ludicrous proposition to begin with and certainly cannot be legitimately justified. It shouldn't be propped up, it should be dismissed as the grab for cash it is.

You havne't posted any facts.just your feeling about what you think a dealership makes on a car. At the end of the day, you're concerned about getting 'ripped off' because of the $600 doc fee. So today, you don't have a new X5, and the dealer will sell to someone else. So what is the difference in DOC fees that you're willing to pay and the $600 ? If it's half of that, you're walking away for $300 or so. If that's a big deal to you, why are you in the market for a BMW to begin with ?

Guys,

I didn't intend to start a debate. The original question was do you think a $600 doc fee is excessive.

Jason - yes I knew there was going to be a doc fee. If I think back to the recent cars I've purchased, both luxury automobiles and not, I don't think I've ever paid anything close to $600.

Tim, the $600 is excessive. I've never heard of anything that high for a doc fee. I assume there's no statutory maximum in GA.

Your situation seems simple - if your "deal" specified all the costs, including the doc fee, then you should pay that whether it's $600 or whatever is in writing. If your "deal" didn't specify all the costs, then you really didn't have a complete deal and you're still negotiating and competing with anyone else on the lot that may be interested in the car.

tim,

I agree, really excessive. Mine is nothing like that. I will PM you the dealer that I am working with just to compare notes, but this is my second BMW M vehicle from them, and the doc fee was like $100.

Good luck with everything.

J

JMK BMW (Springfield NJ) has the doc free printed on the sales form.. $185.00.

It is broken down into $150 "Clerical Expense" and $35 "Document Delivery Service"..

To me, both are same, but i never mind paying it, unless it's in excess of $250..