[CKau]

I thought to chime in since it's becoming a recurring question.

With German brands, I think you should aim for RRP (incl GST). i.e. get the dealer to pick up their delivery charge, registration, and transactional taxes such as stamp duty. I've been able to do this 3 times so far.

When I say RRP, I mean the base RRP plus cost of options plus GST. To calculate RRP yourself, use Redbook.

I consider taxes such as stamp duty as a levy that's small enough for the margins to absorb. However, taxes such as GST are a real big cost on a business considering the rate, so I don't try to negotiate away the GST (or part thereof).

That's my stance when you're spending under the Luxury Car Tax (LCT) threshold (which is $73k for the 328i).

However, once you're over the LCT threshold I'm not sure how well you could get away with the dealer picking up the LCT. Since it's a federal tax and levied at a high rate of 33% for every dollar above the threshold, I personally think it's hard to get the dealer to eat the cost - particularly if they're already eating the cost of rego, plates (in my case Euro plates), and stamp duty.

In summary:-
Use Redbook to calculate RRP
< LCT - aim for RRP (incl GST)
> LCT - aim for RRP (incl GST + LCT)

Having said that, BMW are very hungry for sales as evidenced by their relentless campaigns. First they gave RRP (incl GST) as the drive away for the X5. Then they extended free servicing for an extra month last year and are now giving $4k on diesels !! Talk about needing to boost sales!

If you manage to get a dealer down to RRP +GST+LCT, I would walk away and go to another dealer to see if you can get closer to RRP + GST.

If you can't get under RRP + GST + LCT

Good hunting!