Fees

Both the media and the Vehicle Sales Authority have been focusing on fees that dealers charge consumers. The fact that there are all these fees that may cause us to raise our eyebrows isn't news, but what may be news to some is that they aren't all equal or legal.

According to the Vehicle Sales Authority a dealer can charge any kind of fee they wish as long as it is clearly disclosed upfront and before the negotiations are complete. The reason and the law behind this is fairness in negotiations protected by the Consumer Protection Act. It is unfair and illegal to agree upon a price with a purchaser and then add on several "fees".

The media has been giving some air time to fees that are simply illegal. The most notable example that I've heard of is charging an Environmental Fee and presenting it as if it were a tax being submitted to the government when there is no such thing.

As a buyer how can you protect yourself? What fees are legitimate and which ones should you be wary of?

Documentation Fees are the most common fees and these are legitimate fees. They can cover the initial registration of the vehicle, lien check, ICBC or CarProof check and an inspection. It is entirely ok for a dealership to charge these fees . . . as long as you are aware of it and it's not an add on at the end of the negotiations.

Security Etching is a legitimate purchase but it's not mandatory fee - it is an extra you may purchase. Some dealers try to charge it as a matter of course, suggesting it is part of the purchase process. If you want it - buy it. If you don't then say no thank you.

Warranty Charges, like Security Etching, a warranty is a product. Either you've bought a warranty or you haven't. The choice is yours. Buy it if you want it - often a good idea - but if you don't then say no thanks.

Financing Charges and Delivery Charges can be charged but only if you are aware of it before completing negotiations. You might want to ask why you're paying a fee to finance your vehicle - isn't that what the interest is for?

The only fees that are standard or "required" are the tire and battery levy and taxes. Further, those levies are only for new vehicles.

The Golden Rule, according to the VSA, is upon completion of the negotiation process there should be no surprises.

Until next time, happy driving!