Are these fees legit?

I am in the first stages of looking for a lease on a 2019 BMW 530i and the dealership finally sent me an actual quote specifying where all the charges are coming and going. A couple things jumped out at me. First, there’s a $2,500 “protection” that is supposedly applied to all of their loaner vehicles. So the nice $14,000 discount at the get go is really $11,500. Next, they are applying the destination fee to the cap cost, so that means that the $11,500 is really $10,575.

Their doc fee is $699, which to me is bonkers b/c my Audi’s was like $170 (but to be fair this is a dealer in another state than I previously leased in). Then, they marked up the MF to .00168 while stating that their “buy” rate was .00016, which I’m pretty sure isn’t true given that it’s been consistently quoted as .00128 by almost everywhere here and at Edmonds. Next, they have an “inception fee” that is just stated as $600 and change. They are taking a hypothetical $1000 down payment and only applying 399 and change to cap cost reduction.

This is their first offer, but I’m a little confused as to 1) why the doc fee is so high and 2) how there’s just an inception fee that is conjured out of thin air.

Should I even waste my time with this dealer?

Don’t waste your time here


Find a new dealer


Move on to another based off of the “protection” junk. Doc fees can vary by state, some states fees are capped by law and others are not. What state is this dealer in?

1 Like

They are in Kentucky

That sounds like louisville. I’ve always had better luck in the two Cincinnati stores. The doc fee in Ohio is only 250, and they don’t have that stupid protection plan. They will also discount fairly well. However, 699 is fairly normal for doc fees in Kentucky and they aren’t really negotiable.

I’m just north of Indy and I’ve found the local dealers to be pretty bad at pricing. As I’ve seen elsewhere here, some areas have a bit of a captive customer base. I think we’re one of them here. Thanks for the heads up for Cincy. I’ll check them out—thanks! I’ve also figured Chicago would be decent just given the number of dealerships there. Thoughts?

It’s gonna be a battle, I am currently in a similar situation w the MF, same .00168 and not even a credit check yet. B.S.