Sep 11

Friday, September 11, 2020 

A consumer contacted OMVIC's Complaints and Inquiries team to ask about all-in price advertising and dealer fees.

I recently purchased a used vehicle from an OMVIC-Registered Dealer and he charged me an administrative fee of $199. I questioned this and the dealer said it was a normal charge. I thought dealers couldn’t add fees. Doesn't this violate all-in-price advertising?"

OMVIC: Dealers can definitely charge administrative fees.  They can also charge fees for products or services they’ve pre-installed on the car.  What dealers cannot do is add fees on top of the advertised price. 
 
 Any fee that a dealer intends to charge, except HST and licensing, must be included in the advertised price and those charges have to be itemized on the contract.

If the cost of the vehicle with all the itemized fees on a Bill of Sale totals more than the advertised price, then the dealer is adding extra fees to the advertised price. Adding extra fees breaches all-in price advertising regulations and is illegal.

In the example below, the dealer is charging $20,000 for the vehicle and has additional fees that make the price $21,888. What the dealer is charging is entirely legal because the dealer advertised the car for $21, 888. 

Bottom line: Dealer fees are not  illegal.  Just be aware that dealers have to  include the fees in the advertised price and they have to be itemized separately on the Bill of Sale. 

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If English isn't your first language, don't worry. The Complaints and Inquiries Team uses a multilingual translation service.
You can call 416-226-4500 x3942, request a translator in one of over 150 languages and get help. 
Visit OMVIC's Translation Services page to learn more. 

 

How to Get in Touch

If you’re a consumer with a car-buying or OMVIC related question, get in touch with OMVIC's Complaints and Inquiries team via email or phone 1-800-943-6002 ext.3942.

About OMVIC

As the regulator of motor vehicle sales in Ontario, OMVIC’s mandate is to maintain a fair and informed marketplace by protecting the rights of consumers, enhancing industry professionalism and ensuring fair, honest and open competition for registered motor vehicle dealers. Visit omvic.ca to learn more about your car-buying rights as well as additional tips for buying a car in Ontario. For car buying tips, check out the OMVIC Academy. You can view other resources such as multilingual videos and download the OMVIC Car-buying Guide.

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