Hidden charges complicate a straightforward car purchase
Buying a new car should be a straightforward experience: the price on the window, the features you want, and the final deal. But a CBC Marketplace investigation into Ontario dealerships has highlighted a pattern that could leave buyers surprised at the lot: extra charges and optional features tacked onto the advertised price. While some fees are standard in the auto industry, the investigation suggests that a number of dealers may be layering on costs that aren’t clearly disclosed at the outset, potentially inflating the total out-the-door price.
What the investigation found
The CBC report used hidden cameras to capture conversations and posted price quotes from multiple Ontario dealerships. In several cases, sales staff referred to or included ancillary products and services in the final price—items ranging from documentation and administration fees to optional add-ons like paint protection, rust-proofing, window tinting, and extended warranties. Some fees were marketed in the same breath as a “destination charge” or “delivery fee,” while others appeared as a separate line item on a quote after the customer had expressed interest in a specific model and trim level.
Experts say that certain fees, such as legitimate documentation or destination charges, can be standard. The concern arises when the line between a legitimate cost and an optional add-on becomes blurred, or when the fees aren’t clearly disclosed in the initial advertised price. In some instances, buyers reported pressure to accept add-ons they didn’t intend to purchase, or to sign paperwork before fully understanding the total cost of the vehicle.
What counts as a “hidden” charge?
Hidden charges can take several forms, and they can be legal if communicated clearly. The core issue is transparency: buyers should know exactly what they’re paying for and why before committing to a purchase. Some common examples cited in the investigation include:
- Administration or documentation fees that are rolled into the total price but aren’t clearly disclosed upfront.
- Optional add-ons presented as necessary to secure the advertised deal, such as paint protection or rust-proofing.
- Market-adjusted or dealer-added fees that aren’t evident in the initial online listing.
- Trade-in adjustments or dealership add-ons tied to financing arrangements that appear after the quote has been discussed.
Consumer guidance: how to protect yourself
For shoppers, the CBC findings underscore the importance of due diligence before stepping onto a showroom floor. Here are practical steps to protect yourself and compare apples to apples:
- Get a written, all-in price: Ask for the “out-the-door price” that includes every tax, fee, and add-on. If a dealer balks, walk away and compare quotes from other outlets.
- Ask for a breakdown: Request a line-by-line itemization of every charge and every optional feature, and confirm whether it is required or optional.
- Scrutinize add-ons: If a feature like paint protection or rust proofing is included, ask how its value is calculated and whether you can decline it without affecting the deal.
- Check advertised vs. final price: If you saw a price online, verify that it’s the same as the price on the lot and on the contract. Don’t assume the online deal carries through automatically.
- Take your time to read the contract: Rushing the signing process can hide last-minute changes. It’s okay to pause and review.
- Use a benchmark: Compare quotes from multiple dealers for the same model and trim, ensuring that the terms, incentives, and fees are consistent.
What dealers say and what regulators could consider
Dealerships argue that some fees cover legitimate costs tied to vehicle delivery, processing, and compliance. They also emphasize that optional protection products can be offered as part of a broader financing package. Regulators, meanwhile, stress the importance of clear, upfront disclosures and consumer consent for any add-ons. If a shopper suspects deceptive practices, it’s advisable to contact consumer protection agencies or seek independent guidance to understand the rights and remedies available.
Why this matters for buyers in Ontario
Ontario shoppers deserve clarity and fair dealing when purchasing a car. A transparent pricing approach not only protects consumers but also helps build trust in the automotive market. While many dealerships operate in good faith, the CBC investigation serves as a reminder to demand transparency and to compare offers carefully. By arming yourself with information and asking the right questions, you can reduce the risk of paying for items you don’t want or need.
Bottom line
The CBC Marketplace investigation highlights that some Ontario dealerships may be including extra charges or optional features in the advertised price. Buyers can protect themselves by insisting on a clear, written breakdown of all costs, scrutinizing every line item, and comparing multiple offers. Transparency is the best route to a confident, cost-effective car purchase.
