Sounds like a complete rip-off for a 3.0. I would tell them $28K, and let them haggle you up to $29,000. Don't go a penny over $29,000. They'll still make a healthy profit. Also, tell them to give you 0.9% financing, like they're doing now on the E70 X5s.

They may tell you the $32,995 is their final number, but it's all posturing. In the current gas price climate, SUVs are selling very slow and they are desperate to unload them.

The only good part of their deal is the warranty. Four years, 100K miles is pretty good.