Automotive

$499 Registration fee?!

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  • Oct 3rd, 2012 11:20 pm
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[OP]
Newbie
May 3, 2009
10 posts
Ottawa

$499 Registration fee?!

ok, so I'm new to the new car buying world but this forum has been super helpful so I figured I would ask a question....

I got a quote with a $499 Registration fee for VW. Is this normal, negotiable?

It seems crazy high and my searches for other posts show that the fee is not the same from car to car and person to person...what gives?

thanks in advance
29 replies
Deal Addict
User avatar
May 22, 2009
4314 posts
547 upvotes
Caledon
glggal wrote:
May 29th, 2009 1:02 pm
ok, so I'm new to the new car buying world but this forum has been super helpful so I figured I would ask a question....

I got a quote with a $499 Registration fee for VW. Is this normal, negotiable?

It seems crazy high and my searches for other posts show that the fee is not the same from car to car and person to person...what gives?

thanks in advance
$499 registration for what? We charge $1,360 for freight and pdi, $175 globali and $245 admn fee. You must in an area where there's only "one" VW dealer.
[OP]
Newbie
May 3, 2009
10 posts
Ottawa
There are several dealers here....When I asked, this was the response:

"All dealers have an Admin Fee. It covers the cost of paperwork, arranging licensing, a full tank of fuel, etc."

I want it waived alltogether...possible?
[OP]
Newbie
May 3, 2009
10 posts
Ottawa
afretes wrote:
May 29th, 2009 1:04 pm
$499 registration for what? We charge $1,360 for freight and pdi, $175 globali and $245 admn fee. You must in an area where there's only "one" VW dealer.
p.s. is Globali the fuel, AC and omvic taxes combined?
Deal Addict
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Feb 9, 2009
1477 posts
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Markham
It can't be waived, depending on the car, it might be worked into the price of the car. If it bundled all together with some other things then maybe its not so bad.

Here, it is $299 for admin, $5 OMVIC, $65 fuel, $53 PPSA(for leases), and $100 Air Tax. All together that would be $457. Maybe they added it altogether, as for a break down for what that $499 is covering.
Deal Expert
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May 22, 2005
18967 posts
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Thornhill
glggal wrote:
May 29th, 2009 1:21 pm
p.s. is Globali the fuel, AC and omvic taxes combined?
Globali is a vehicle tracking system I think?


OMVIC will always be $5 IIRC

Fuel and Gas tax are there no matter what, its a government 'fee' upon purchasing a vehicle.
[OP]
Newbie
May 3, 2009
10 posts
Ottawa
jasonkwan86 wrote:
May 29th, 2009 1:26 pm
It can't be waived, depending on the car, it might be worked into the price of the car. If it bundled all together with some other things then maybe its not so bad.

Here, it is $299 for admin, $5 OMVIC, $65 fuel, $53 PPSA(for leases), and $100 Air Tax. All together that would be $457. Maybe they added it altogether, as for a break down for what that $499 is covering.

thanks for the info.

When I say 'waived', I assume that it will simply be worked into the price. It certainly seems like a lot for an admin fee.

In addition to that fee, there is the $100 Air Tax, $5 OMVIC and $75 gas tax.
Newbie
Apr 28, 2007
12 posts
2 upvotes
Ottawa
admin fee can be "waived". It's all part of the dealer profit, so basically what they are making over invoice.

I always negotiate on what I want to pay over invoice, minus incentives, and then mandatory fees. Admin fee is not, it's up to your negotiation and the dealer whether to remove it, obviously if your paying the admin fee, they will feel more comfortable moving on the purchase price of the car.

I usually offer a few hundred over invoice, with no extra fees(other than mandatory), minus incentives.

VW isn't in such tough shape as many of the others it seems so they might not budge easily, either way, get the deal you want.
Newbie
Mar 12, 2009
26 posts
Ottawa
Figure out how much over invoice you are willing to pay - the Admin Fee and Globali registration are pure profit items - if they want to leave them on the paperwork - fine - but remember that they are pure profit, and reduce your "over-invoice" offer accordingly.

OMVIC, Loan Registration, Air Tax - they are legit fees.

Gas ??? They had the balls to ask 65 bucks to put a tank of Gas in a new car ??? What in tarnation is the PDI supposed to cover, other than a car-wash and a tank of gas.

I would seriously look for another dealer.
Member
May 19, 2009
467 posts
15 upvotes
Belleville
That is pronounced "Sucker Fee". Don't pay it. Vote with your feet and go somewhere else.

There are plenty of other dealers who would love your business without resorting to the sleaze tactics.
Deal Fanatic
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Nov 23, 2005
8166 posts
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Ohh .. gotta love these admin fees combined with all the other "lets rape the customer for pure profit" fees ...
[OP]
Newbie
May 3, 2009
10 posts
Ottawa
thanks all.

I agree it is ridiculous. I appreciate profit for the salesman but....

Anyway, it may not matter. I can't find a single car in the country with the specs I want.
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Jan 27, 2006
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Woodbridge
My sales hinted it's basically a bonus for the business managers. For filling out, sending the paper work.

The lowest I paid was $100.
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