OP that's an acceptable deal for both parties. God forbid a dealer makes more than $500 on a 70k investment people. Would you be happy with that from one of your investments, or would you want the maximum attainable on your money?
Also remember that a local dealer would benefit from a lower price because they will see a return from service/warranty work. Out of area sales are not beneficial to the selling dealer. Not to mention as the car nears its production end, prices are likely to hold higher than before. Since the M3 will not be available for some time until the next generation goes into production. Just my .02