Buying a new car: but what's with all these extra fees ?

[claudiu_corbea]

I know the topic has been discussed, but the name of the fees are always different and I want to know exactly what they represent and try to negotiate the price.

The idea is I am looking into buying Hyundai Tucson which comes with a $4000 incentive right now. But according to the dealer they are selling like hot cakes because of the incentive and they don't have my desired trim level on stock, they have to get it from another dealership. Obviously I want to bring the price down but I don't know how much room I have left considering the dealer's attitude towards this "hot sale".

Anyway I have a few questions regarding a price quote:

1. The MSRP including destination charges is $200 higher than what is posted on www.Hyundai.ca. I don't know how much exactly I was charged for destination since it is added to the car sale price, but is there a reason why it might be $200 higher than the website?
2. Vehicle Registration Fee (ETF) $484. What exactly is this because it can't be the price for registering the car, it is way too much? At some point in the discussion the salesman mentioned that I also have to pay for the air conditioning tax, but I actually don't see the AC tax anywhere so is it included in this vehicle registration fee?
3. Security Registration Fee $74.92 > I was told it has something to do with etching the VIN number on the windows and it can be recovered in case it gets stolen. This fee is not so much so is it worth it after all, does it serve any real purpose? I am thinking if the car gets stolen, the police will try to track it, if not the insurance will pay and that's it.

Bottom line, at the end of the day with all these extra fees and HST added to it, the cost of the car is 900$ more than the financing price (0% for 48 months) posted on Hyundai.ca. I have a feeling I am being ripped off....

[BradT]

Lots of Hyundai dealerships around. Try some around the GTA to see if you can find a dealer that has what you are looking for. I'm not familiar with what Hyundai dealers are good, but I am sure someone will post and let you know good ones to try. You may save quite a bit by going 1.5 hours away.

[Frankie3s]

What you should do is get either a APA or a car cost Canada dealer quote so you'll exactly what the dealer cost of the car is. The dealer incentives should also be listed on there as well. If you go with the APA one, it will give you the option of using one of their pre-screened dealers. Take this to another dealer and see if they can beat it. If they can't then you know you've got a great hassle free deal. Less hassle this way.

[dealman5]

I would not do the deal...I never pay those doc fees... Any extra fees are a big scam.
Just bought a new vehicle last week and they wanted 4 hun.

http://www.streetdirectory.com/travel_guide/50111/auto_finance/how_to_avoid_these_5_car_dealership_scams.html

[googoo]

I used Cars4u.com, great price on my Forte hatch.

Brent

[geokilla]

What you should do is get either a APA or a car cost Canada dealer quote so you'll exactly what the dealer cost of the car is. The dealer incentives should also be listed on there as well. If you go with the APA one, it will give you the option of using one of their pre-screened dealers. Take this to another dealer and see if they can beat it. If they can't then you know you've got a great hassle free deal. Less hassle this way.

If I remember correctly, Car Cost Canada does not show those admin fees. I believe I got charged roughly the same amount as the OP.

And note Car Cost Canada does not always give you the best bang for buck. We were able to negotiate to something cheaper than what Car Cost Canada offered for our S60 T5 Level II.

[reg boulette]

Just get up and walk if they try to charge you these fees. My last vehicle they wanted to charge $300 for the "registration fee" turned out to be some "global" BS with stickers on your car in case parts were stolen. Just padding on the dealer's profit and absolutely useless. Also, when you read the brochure, you had to register yourself on their on line site which needed all kinds of personal information and no guarantee it wouldn't be pooled with others. All the extra charge are worthless - as a matter of fact with the APA pricing there is even a reduction on the PDI/shipping fee.

[Non-Imbroglio]

Definitely don't pay those fees. APA and CarHelpCanada are two decent resources to help you find a decent dealer.

Best advice I can give you is don't rush and if your not sure don't sign anything.

Good luck in your purchase.

[yao416]

Go see Brian at Mississauga Hyundai

[MrDisco]

I know the topic has been discussed, but the name of the fees are always different and I want to know exactly what they represent and try to negotiate the price.

In addition to using the services of ccc, apa, etc. I would say the added fees are a little irrelevant. What matters is the on the road the price. So instead of wasting time arguing over line items, you should draw up your budget and present a fair offer based on how much you can afford. It's up to them to play with the numbers to either accept or reject your proposal.


I also have to pay for the air conditioning tax, but I actually don't see the AC tax anywhere so is it included in this vehicle registration fee?

Taxes will always be listed separately as a line item. Other fees you may encounter are the $5 OMVIC fee and registration fee if financing.
"When buying a new car, you may also be billed for industry-specific taxes, pre-delivery preparation costs, freight costs and anti-theft window etching products. Combined, these fees can add thousands to the advertised price of a vehicle. These fees and costs must be disclosed separately on the bill of sale and in dealer advertisements."


Bottom line, at the end of the day with all these extra fees and HST added to it, the cost of the car is 900$ more than the financing price (0% for 48 months) posted on Hyundai.ca. I have a feeling I am being ripped off....

Don't get sucked in. Arm yourself by using one of the services mentioned in this thread, fire up Excel and plug all your values in. You should know exactly how much you want to spend on a specific model and trim level before even setting foot in a dealership. Even when dealing with one of the forum sales people you should still have a clear idea of what the car is going to cost before speaking with them. Good luck.

[dealsaddict]

Why not? They are "extra" fees after all.

Now, for the price you paid, you might want to demand "extra" features to be included (if not included, just make up something :D). For example (one of or combination of) ...

- Moonroof
- Rubber/winter mats
- Remote start
- Better tires
- A full size spare tire

:idea: ...

[Andro]

if you pay MSRP that is posted on website or higher :facepalm:

You can always do better (lower) than MSRP.