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MACO and Training Fees
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10-23-2008, 12:33 AM | #3 | |
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10-23-2008, 11:24 AM | #5 |
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10-23-2008, 02:12 PM | #6 |
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There are two ways of negotiating a deal. One is to say "I will give you X dollars, including all fees." In this case, you have a final price, and there shouldn't be anything else added afterwards (except taxes and registration fees, of course). So, if you tell a dealer you are willing to pay $40,000 inclusive of all fees, then there shouldn't be any add-ons like MACO.
A second way of negotiating is to say "I will give you X dollars above invoice." In that case, the $180 training fee and advertising fee (MACO) are part of the dealer's invoice price and you will have to pay them. The idea is that you paying the deal X dollars above what he pays. If he is paying BMW MACO fees, then it is part of his invoice. Personally, I've never felt good about this sort of crap. Advertising is part of a dealer's cost of doing buisness - and I don't see why I should be expected to cover it. But, that is the way it is.
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10-23-2008, 02:26 PM | #7 |
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10-23-2008, 11:12 PM | #8 | |
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I negotiated the final cost of the car with the options that i wanted, which was $43,500. So the only fees added on to that was tax, tile, and reg. Some dealers that I talked to did want to charge the MACO and training fee but I told them I don't want to pay it or else I'll find another dealer. There are dealers out there that won't charge you those fees. |
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10-24-2008, 12:51 PM | #9 |
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You need to understand that the MACO and training are not fee's added to increase the price for the customer. They are fees that LOWER the profit margin for dealers. I've seen lots of misleading information on the forum and this thread specifically made me post. The MACO and training are added to our invoice. They are PART of the invoice price no way around it, just how it is. |
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10-24-2008, 12:52 PM | #10 | |
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10-24-2008, 03:28 PM | #11 | |
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10-24-2008, 03:41 PM | #12 | |
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doesn't matter how you negotiate it, the maco & trainging fees are still, they still reduce the profit margin for the dealer. Certain regions do not have maco, but most do & all have the training fee. If you say "$40k otd" taxes and all. M & T are still there. If you negotiate over invoice, it is part of the invoice. |
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10-24-2008, 03:57 PM | #13 | |
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If you negotiate (as I did) X$ above invoice, and MACO/Training fee are part of invoice, it is reasonable to expect to pay it.
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10-24-2008, 04:03 PM | #14 |
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A $180 Training Service Fee was recently added to be part of base invoice pricing. It was not there a few years ago. So if you negotiate xxx over invoice, then that is already included in the calculation.
Regarding MACO, I have never ever paid such a fee. That must be specific to certain dealerships or markets. |
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10-24-2008, 04:23 PM | #15 | |
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You are free to disagree all you want, doesn't change the facts though. As a dealer, I can very much say that the fees are still there, you just don't see them. If you pay full msrp, it's still there, doesn't matter, it's still there. The fees are just simply part of the invoice, we didn't add them as dealer. Let's say you build a car using a wholesale sheet/ edmunds, what ever. Lets say you get an "invoice" of $36,000 & an MSRP of $41,000. On that very same car, BMWNA will create an invoice that will show MACO (for our region) of $250 & traning fee of $180. So our true invoice is actually $36,430. No matter what the final selling price is, no matter what the otd price is, our invoice will still be $36,430. |
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10-24-2008, 04:24 PM | #16 | |
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10-27-2008, 12:52 PM | #17 |
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10-27-2008, 03:50 PM | #18 | |
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I personally negotiated a price above invoice. The dealer then gave me a printout that has his invoice - and it also had lines for $180, and MACO. So, his total invoice is the published wholesale value of the car and $180 and MACO. Given that I said I'd give him roughly $1000 over invoice, the dealer should expect me to pay $1000 + Wholesale cost of car + $180 + MACO. The fees are non-negotiable in this situation because our deal was for cost + $1000, and MACO is a legitimate part of cost. It would be an entirely different situation if I went in to the dealer and said "regardless of what the car costs you, I am willing to pay $45,000 out the door - inclusive of all fees." In that case, the price I pay is $45,000 NOT $45,000 + $180 + MACO. The training fees and MACO are only visible to the consumer as contributing to the cost when it is a negotiated price above invoice. If you negotiate an absolute dollar amount, the dealer doesn't get to add any additional fees later. Of course, MACO will figured into what the dealer is willing to give you the car for under that circumstance.
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10-27-2008, 05:49 PM | #19 | |
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10-27-2008, 07:05 PM | #20 | |
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I understood what you were saying, (and I'm not arguing either) I was more or less trying to clarify for people that maco & training aren't just simply fees added at any given time. fyi; the above statement is bang on |
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10-27-2008, 07:07 PM | #21 | |
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and of course they really can't add them, with the range of maco fees being different. |
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10-27-2008, 07:54 PM | #22 |
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OK, dbtheo. I hope I didn't come across as too oppositional. I appreciate the attempt to clarify though.
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