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2Addicts | BMW 2-Series forum BMW 2 Series (F22) Forum 2 Series Pricing, Ordering, European Delivery Asked for 500 over invoice, got it, but with "Dealer Processing Fee"

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      05-25-2015, 10:02 AM   #1
MegaMatt3
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Asked for 500 over invoice, got it, but with "Dealer Processing Fee"

Hi all,

So I want to do an ED on an M235i. And I want a good deal. After reading lots of posts here in the forums, I decided that $500 over invoice is the sweet spot.

So I called up my local dealer and said I wanted to do ED, wanted $500 over ED invoice ($36,925 + 500), and invoice pricing on all options. He checked with the sales manager, and came back with "yes", on both 2015 and 2016 models.

But, when I asked about other fees, he told me these:
  • $299 Dealer Processing Fee
  • $324 MD tag & title
  • 6% MD sales tax

I should ask him to strike that dealer processing fee, right? If I asked for $500 over invoice, that means I want them to make $500 over invoice, not $800 over invoice. With that fee, they're really giving me $800 over invoice.

Just wanted a sanity check before I push back on it.
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      05-25-2015, 10:10 AM   #2
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Give me a few hours. I'm in MD, when I get home I'll check my Tag & Title fee - I transferred tags.
I'll also check dealer processing fee, but I also traded in a car, etcetera.

But yeah in terms of negotiating its your next move to get them to remove dealer processing fee.
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      05-25-2015, 10:13 AM   #3
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Ehhh...Not horrible, I got ~750 all in. Squabling over ~300 is not worth ruining a relationship with the dealer considering how significantly our cars are discounted already. Not to mention this is the one deal where you need the dealer to shine and make sure all the Ts are crossed and Is are dotted. There is to much out of pocket expense on you with airfair and hotels for the dealer to screw something up.

$500 is dealer profit, Dealer fee is what covers the people in back pushing papers. No way your getting MD Tag/Title lower. This is what it costs them to register your car with the state. In most states this number is illegal to mark up.

I say your deal is good, Maybe ask dealer doc fee to ~150-200 (which should break them even on the cost of the paperwork) but dont push them.

Personally my time is worth way more then $250-300 to fight over that amount. YMMV
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      05-25-2015, 10:27 AM   #4
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Quote:
Originally Posted by ScottSinger View Post
Give me a few hours. I'm in MD, when I get home I'll check my Tag & Title fee - I transferred tags.
I'll also check dealer processing fee, but I also traded in a car, etcetera.

But yeah in terms of negotiating its your next move to get them to remove dealer processing fee.
That'd be great, thanks. I'm sure they're not screwing me on the tag+title, though.
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      05-25-2015, 10:31 AM   #5
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Quote:
Originally Posted by 3PedalMINI View Post
Ehhh...Not horrible, I got ~750 all in. Squabling over ~300 is not worth ruining a relationship with the dealer considering how significantly our cars are discounted already. Not to mention this is the one deal where you need the dealer to shine and make sure all the Ts are crossed and Is are dotted. There is to much out of pocket expense on you with airfair and hotels for the dealer to screw something up.

$500 is dealer profit, Dealer fee is what covers the people in back pushing papers. No way your getting MD Tag/Title lower. This is what it costs them to register your car with the state. In most states this number is illegal to mark up.

I say your deal is good, Maybe ask dealer doc fee to ~150-200 (which should break them even on the cost of the paperwork) but dont push them.

Personally my time is worth way more then $250-300 to fight over that amount. YMMV
Yeah, agreed that in context of $45,000, $300 isn't much to fight over. But I also consider dealer profit to be dealer profit. Divide it up any way you want to once the sale is made, but when I asked for 500 over, I really meant 500 over. I'm just sort of perturbed at the inclusion of the dealer processing fee when we'd already settled on the number over invoice I'd be paying (not to include mandatories like tag/title, dest, and sales tax). You know?
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      05-25-2015, 12:19 PM   #6
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Quote:
Originally Posted by MegaMatt3 View Post
Yeah, agreed that in context of $45,000, $300 isn't much to fight over. But I also consider dealer profit to be dealer profit. Divide it up any way you want to once the sale is made, but when I asked for 500 over, I really meant 500 over. I'm just sort of perturbed at the inclusion of the dealer processing fee when we'd already settled on the number over invoice I'd be paying (not to include mandatories like tag/title, dest, and sales tax). You know?
Why not shop around? Take that number her offered you to another local dealer and ask if he can beat it. If they do, take it back to the first. Heck pass the deals you get to every dealer within a 100 mile radius till one gives you an offer you can't refuse. Do your leg work and shop.
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      05-25-2015, 12:22 PM   #7
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Quote:
Originally Posted by MegaMatt3 View Post
That'd be great, thanks. I'm sure they're not screwing me on the tag+title, though.
Tags $135
Title. $100
Electronic Reg & Title Fee $20.00
MD Tire Tax Recycling Fee $4.00

Dealer processing Fee $195.00


I didn't attempt to negotiate a very good deal by selecting an amount over invoice. I just wanted to be sure I wasn't paying MSRP, that my trade in was worth what I thought ( not Black Book ), and that a Manufacturer to Dealer $1000 incentive was applied. When I was young I went for the lowest OTD price I could get by hitting all the dealers and offer then counteroffer till I thought the manufacturer to dealer incentive was pretty much their profit. There are special BMW event $1000 to dealer rebates about, guess your car is included.

Last edited by overcoil; 05-26-2015 at 06:06 AM..
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      05-25-2015, 11:56 PM   #8
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Dealer proc fee

Quote:
Originally Posted by MegaMatt3 View Post
Hi all,

So I want to do an ED on an M235i. And I want a good deal. After reading lots of posts here in the forums, I decided that $500 over invoice is the sweet spot.

So I called up my local dealer and said I wanted to do ED, wanted $500 over ED invoice ($36,925 + 500), and invoice pricing on all options. He checked with the sales manager, and came back with "yes", on both 2015 and 2016 models.

But, when I asked about other fees, he told me these:
  • $299 Dealer Processing Fee
  • $324 MD tag & title
  • 6% MD sales tax

I should ask him to strike that dealer processing fee, right? If I asked for $500 over invoice, that means I want them to make $500 over invoice, not $800 over invoice. With that fee, they're really giving me $800 over invoice.

Just wanted a sanity check before I push back on it.
You are right your deal is actually about 700 over invoice as most dealers charge a $40-100 processing fee for doing DMV paperwork ... At this point I would focus on more on how much experience your dealer has with ED versus price.

If this is the dealer you want then I think you make the deal...but if you're not convinced these guys are ED experts (as determined by recommendations) then shop around. A botched ED will cost you thousands.
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      05-26-2015, 08:56 AM   #9
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Quote:
Originally Posted by cehlion View Post
You are right your deal is actually about 700 over invoice as most dealers charge a $40-100 processing fee for doing DMV paperwork ... At this point I would focus on more on how much experience your dealer has with ED versus price.

If this is the dealer you want then I think you make the deal...but if you're not convinced these guys are ED experts (as determined by recommendations) then shop around. A botched ED will cost you thousands.
Is there an accepted way to get recommendations in the forums on good ED dealers? I'm working with BMW of Catonsville in Maryland right now, but I don't want to spam the Ordering forum with a question about a specific dealer. I put out a question in the regional forums, but didn't get much of a response...
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      05-26-2015, 04:32 PM   #10
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Quote:
Originally Posted by MegaMatt3 View Post
Is there an accepted way to get recommendations in the forums on good ED dealers? I'm working with BMW of Catonsville in Maryland right now, but I don't want to spam the Ordering forum with a question about a specific dealer. I put out a question in the regional forums, but didn't get much of a response...
I would just create a single post under this sub forum requesting a rep in your area make sure the title says "Looking ED CA in Maryland or Northeast." ... Or something to that effect, that way someone can just look at the title and decide if they want to open it or not.

I'm back at the hotel just completed my delivery today completely awesome experience.
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      05-27-2015, 10:28 AM   #11
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Quote:
Originally Posted by cehlion View Post
I would just create a single post under this sub forum requesting a rep in your area make sure the title says "Looking ED CA in Maryland or Northeast." ... Or something to that effect, that way someone can just look at the title and decide if they want to open it or not.

I'm back at the hotel just completed my delivery today completely awesome experience.
Awesome! Congrats.
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      06-03-2015, 08:29 AM   #12
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Quote:
Originally Posted by ScottSinger View Post
Tags $135
Title. $100
Electronic Reg & Title Fee $20.00
MD Tire Tax Recycling Fee $4.00

Dealer processing Fee $195.00


I didn't attempt to negotiate a very good deal by selecting an amount over invoice. I just wanted to be sure I wasn't paying MSRP, that my trade in was worth what I thought ( not Black Book ), and that a Manufacturer to Dealer $1000 incentive was applied. When I was young I went for the lowest OTD price I could get by hitting all the dealers and offer then counteroffer till I thought the manufacturer to dealer incentive was pretty much their profit. There are special BMW event $1000 to dealer rebates about, guess your car is included.
So I asked my dealer to break down the $324 tax/title fee, and he said they pad it by about $40. I didn't fully understand why. You mentioned that you transferred tags. I'm assuming that means you took tags from your trade-in and used the same ones on the new car. In my case, I won't be trading anything in, so I'll need new tags altogether. Maybe that accounts for the extra cost?
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      06-03-2015, 10:12 AM   #13
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Quote:
Originally Posted by MegaMatt3 View Post
So I asked my dealer to break down the $324 tax/title fee, and he said they pad it by about $40. I didn't fully understand why. You mentioned that you transferred tags. I'm assuming that means you took tags from your trade-in and used the same ones on the new car. In my case, I won't be trading anything in, so I'll need new tags altogether. Maybe that accounts for the extra cost?
Yes, I had a trade-in.
Have you applied any kind of $1000 manufacturer to buyer incentive gotten by attending a ride & drive event? I think there is a BMW ride & drive event at Fed-Ex Field starting tomorrow till Sunday- but I'm not certain.
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      06-03-2015, 11:10 AM   #14
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Quote:
Originally Posted by ScottSinger View Post
Yes, I had a trade-in.
Have you applied any kind of $1000 manufacturer to buyer incentive gotten by attending a ride & drive event? I think there is a BMW ride & drive event at Fed-Ex Field starting tomorrow till Sunday- but I'm not certain.
No I haven't but I guess I sort of assumed that was a scam. I'm already getting a pretty good deal with my dealer, but will that automatically take another $1000 off whatever price I've previously negotiated?
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      06-03-2015, 11:17 AM   #15
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Here you go...

"HOW MUCH DOES IT COST?
HOW/WHEN DO I RECEIVE MY PURCHASE INCENTIVE? DO I HAVE TO DRIVE TO RECEIVE THE INCENTIVE?
Incentive codes will be sent in a thank you email within 48 hours of checking-in at the on-site registration tent. While driving is encouraged, it is not required."

https://ude.bmwusa.com
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      06-03-2015, 11:32 AM   #16
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Everytime I purchase in MD I get charged around $350 for tag/title etc. I usually get a check back a month later for around $100. The UDE incentive cannot be used on ED.
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      06-03-2015, 11:49 AM   #17
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Quote:
Originally Posted by chrisv_335EBII View Post
Everytime I purchase in MD I get charged around $350 for tag/title etc. I usually get a check back a month later for around $100. The UDE incentive cannot be used on ED.
Your right not on ED, forgot about thaf.
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      06-03-2015, 11:58 AM   #18
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MegaMatt3, what dealer are you working with MD? Are you doing ED? PCD? Did you look at going out of state - Dave Aviles?
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      06-03-2015, 12:22 PM   #19
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If you dont mind my asking, what is the actual invoice price on the m235i?

And what are non-ED people paying over invoice on average?

Thanks!
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      06-03-2015, 01:34 PM   #20
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Quote:
Originally Posted by chrisv_335EBII View Post
Everytime I purchase in MD I get charged around $350 for tag/title etc. I usually get a check back a month later for around $100. The UDE incentive cannot be used on ED.
Interesting, because my dealer said something similar. When I asked him why it was over, his response was "I work here, so I don't about regular customers, but any time I've bought a car, I get a check in the mail for the difference."

I sort of thought he was blowing smoke because, honestly, that makes no sense at all. Why not just not charge me the overage in the first place if you're going to end up sending a check for the difference?
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      06-03-2015, 01:36 PM   #21
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Quote:
Originally Posted by ibeam81 View Post
MegaMatt3, what dealer are you working with MD? Are you doing ED? PCD? Did you look at going out of state - Dave Aviles?
BMW of Catonsville and Northwest BMW. Looking to do ED, but I haven't closed the door entirely on doing a plain US delivery. I did check with David, but he was asking 700 over invoice + 750 to ship it back across the states. Locally, I'm getting 500 over invoice, 300 dealer processing fee, and a slightly padded tax/title fee. Even with all the fees locally, that beats the deal with David when you account for shipping costs.
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      06-03-2015, 01:41 PM   #22
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Quote:
Originally Posted by alexc93 View Post
If you dont mind my asking, what is the actual invoice price on the m235i?

And what are non-ED people paying over invoice on average?

Thanks!
2015 or 2016? ED or US delivery?

2015 ED - $36,925
2016 ED - $37,820
2015 US - $40,150
2016 US - Not sure yet
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