The setup fee is really the dealer trying to recover overhead costs - and the fee varies widely. Here in California, real estate costs are reflected in the setup fee. Mountain View HD - a nice area between San Jose and SF Bay, charges $1199. They are a freeway location in an expensive area. Many dealers along the coast are $850 or more. The dealer in Bakersfield (moved into a new building on the freeway four years ago) charges $650. You find a dealer in a low-cost market and you will usually find low setup fees.