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If you have ever purchased a new vehicle, you know that there are a significant number of extra fees that are added to the MSRP, or manufacturer suggested retail price. In other words, that $15,995 is not really $15,995.
You will have to add taxes, but most consumers expect that. On the other hand, other fees, such as freight and transportation, PDI, air tax, and inspection fees, to name a few, must also be added. That said, since 2010, dealerships in Ontario are required to abide by the “all-in” pricing law, which states that all fees that dealers will add after the sale must be included in the advertising price.
These fees include:
Freight and transportation
Usually the most significant fee, it is the cost of shipping the vehicle to the dealer.
PDI or pre-delivery expense
This is the cost of preparing the vehicle for sale. When vehicles arrive at the dealership, they have been in transport for a while and are usually wrapped in protective materials.
Administration fees
These are fees pertaining to preparing documents such as contracts, as well as processing fees.
Government levies (air tax, etc.)
Various taxes charged by the government, most usual of which is the air tax.
OMVIC fee
A fee of 10 $ charged by the Ontario Motor Vehicle Industry Council.
Pre-installed products
Tire warranty, fuel, nitrogen and any other product that was added to the vehicle before it was sold.
Thank you to Honda Queensway for their help with this article.
