Maco, trianing, prep fees

[JHZR2]

For an NJ purchase, can anyone advise of the Maco and training fees, what about "prep"? Im told it is charged on every car, but Ive also heard in general reading that this is a bogus fee. Please also consider especially if doing a PCD, as there is no dealer prep fee since the car never hits the dealer.

Im working to get $500 over invoice on an 11 135i, but all of a sudden going through the options, Im getting a $200 markup on lease assumption (if I went that way), plus an MF markup, Im getting that prep fee, etc. Makes the price jump up higher...

So I want to be perfectly aware of what is bogus and what is not... So I know when to walk.

Thanks!

[KingOfJericho]

If you're paying $500 over invoice, I would just pay the fee. They legitimately have to pay a staff to do all of the back office and to actually physically prep your car so I don't know how it could be called "bogus."

[mineo77]

MACO/training fees are unavoidable to my knowledge. I would not pay the prep fee, i just asked to eliminate that and my dealer said, 'no problem'. They usually will not want to lose a sell over a few hundred bucks. But you have to understand a dealer will need to make some profit too, 3% is a fair and standard profit margin. European cars do NOT get dealer kickback for sells like American car manufactures do, so usually negiotiations are tighter. I was happy with $1000 over invoice, so $500 is a great deal

[JHZR2]

I have no issue with MACO, and I believe trianing fee is on the pricing sheets.

But dealer prep is an item that ive typically heard is a bogus fee, but I am not aware of BMW's operations.

Seems especially odd to pay the dealer for preparation of a car that will be delivered to the performance center.

I am not denying the dealer some level of reasonable profit, but I do want to be sure that oddball ripoffs are not included in what I pay.

[mineo77]

yep, the prep fee is a bogus fee. wouldnt pay it

check out this site...good info:

http://www.carbuyingtips.com/car3.htm

[CapHill1er]

Originally Posted by mineo77

MACO/training fees are unavoidable to my knowledge. I would not pay the prep fee, i just asked to eliminate that and my dealer said, 'no problem'. They usually will not want to lose a sell over a few hundred bucks. But you have to understand a dealer will need to make some profit too, 3% is a fair and standard profit margin. European cars do NOT get dealer kickback for sells like American car manufactures do, so usually negiotiations are tighter. I was happy with $1000 over invoice, so $500 is a great deal

So in all those car-buying prep sheets, we should ignore Dealer kickback (I assume you mean "holdback")?

Also remember for ED, you shouldn't pay the training fee since you get trained in Germany, not at the dealership. I would assume a PCD would make the training fee similarly redundant.

[KingOfJericho]

Originally Posted by CapHill1er

So in all those car-buying prep sheets, we should ignore Dealer kickback (I assume you mean "holdback")?

Also remember for ED, you shouldn't pay the training fee since you get trained in Germany, not at the dealership. I would assume a PCD would make the training fee similarly redundant.

Holdback does not exist at BMW so yes, ignore it. Also, you're not paying for them to train you, you're paying for them to get trained on the product (I believe). If the sale is originating in the US, which is does for ED, then you will be asked to pay it.

[CapHill1er]

Thanks, but the ED invoice sheet specifically states to not include the $200 training fee when creating an ED order.

[KingOfJericho]

Then there's the answer.

[CapHill1er]

Yupper. My only question was on the dealer holdback. Guess I have to pay a bit more than I expected.

Originally Posted by KingOfJericho

Then there's the answer.

[mineo77]

yep, to confirm. NO dealer holdback for BMW.

These price guide/sheet is a great negiotiating tool, at least it has been for me.