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Auto sales: Which fees are mandatory

In this Wednesday, Sept. 18, 2013 photo Chevrolet passenger cars form a row on a dealer's lot in Needham, Mass. U.S.
In this Wednesday, Sept. 18, 2013 photo Chevrolet passenger cars form a row on a dealer's lot in Needham, Mass. U.S. AP Photo/Steven Senne

Buying a car can be stressful and it’s easy to overlook obvious details and questions during the sale.

A common complaint involves all the extra fees added to the manufacturer’s retail price.

The Alberta Motor Vehicle Industry Council (AMVIC) is clarifying which fees are mandatory and which ones are not, after a number of questions from consumers.

“It’s some that people are saying they didn’t ask for the extras, they may not understand what these extras are and some people say they were told that the extras were mandatory, that they had to pay them,” says Laure Lowe with AMVIC.

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AMVIC is reminding consumers the only mandatory fees are GST and the Tire Tax and anything else, says Lowe, is extra and added by a dealer.

“These may be for perfectly reasonable fees and you may want to pay them. It may be an extra that you want to have. We just want you to know that you have the choice,” adds Lowe. “You can try to negotiate or you can walk away from the deal but don’t feel as though you have to pay it.”

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The Motor Vehicle Council says many disputes over fees come from poor communication, which is why dealerships and salesmen are expected to disclose all fees and what they are for, in advance and in writing.

Here are some car buying tips from AMVIC:

  • Document in writing any pre-purchase discussions and figures.
  • Make sure you understand what all extra fees are for.
  • Compare the final price of the same vehicle with other dealerships.
  • Take your time to decide.
  • Make sure the seller & dealership is registered with AMVIC.

If you are buying a car privately, be aware AMVIC regulations do not cover person-to-person transactions.

If you want more information go to www.amvic.org

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