Dealer Fees Must Be Disclosed

Clear and transparent vehicle pricing continues to expand across Canada with the aim to ensure “truth in advertising.”  All-in pricing is now a legal requirement in Manitoba, Alberta, Ontario, and Quebec.  In British Columbia it’s known as total price.  In Manitoba, consumers are following up on misleading pricing in ads and added dealership fees.

Any advertised price that you see—whether it is online, in print, or on the vehicle itself—needs to be the total price you pay.  The total advertised price must include all dealer fees, transportation and pre-delivery charges, as well as the cost of accessories already on the vehicle.  Taxes are not required to be included in this price.

In B.C., dealer fees are not illegal, nor are they mandatory.  There is no set amount for the fees, so they may vary dealer to dealer (anywhere from $0 to $800+).  However, any dealer fees must be clearly disclosed during the negotiation of the final price.  Fees can’t be added on top of the advertised price.

Dealers who add fees on top of the advertised price may be required to issue refunds.  An undercover investigation in Manitoba found that seven out of ten dealers added “mandatory” extra fees on top of the total or all-in price.  Following the investigation, several of the dealers reimbursed consumers in amounts ranging from $599 to $1799.

Further Reading and Resources:

The Story in Manitoba I

The Story in Manitoba II

Fact Sheet: Understanding Dealer Fees