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Sharing the experience here post going through all the comments -
I visited the BMW Service Center directly instead of BMW dealer first to pick up the car after pre-inspection. The report was all ok and in inspection found no faults/issues. Not sure if that was the case or something else, but got lucky and BMW Service Center did not charge me for anything (might be that I was still under warranty till then), including the oil change - even when the BMW Sales Specialist told me that I'll need to pay $350 to the BMW Service and bring in the receipt with me while visiting the BMW dealer.
Post picking up my car, went to the BMW dealer and called out all the "fake fees" and additional charges on top of my original RV. Sales person was surprised to see that BMW Service Center did not charge me any money for the pre-inspection. Asusual post the callout, they acted of talking to their Sales Manager and came up with the reason that this is some "Dynamic value" of the car that they accidentally charged to me and came up with revised interest rates (which were still higher than what credit union was offering it to me), and even removed the doc fees (when called it out).
I politely declined on proceeding ahead with dealership, and went to credit union to get it all processed. Credit union were more than happy to help and got me better rates than BMW was offering, plus did not charge me any additional charges than RV + Taxes that were mentioned in the BMW payoff information
Thank you all for your valuable inputs and the help. These certainly helped to understand the entire process as well as how dealers lure you out and add any fake charges for the sake of buyout
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