Avoid these costly dealer add-ons and fees when buying a car
A. Krivonosov
Dealer extras like extended warranties and rustproofing can inflate your car bill by $4,000. Learn what to skip and how to negotiate a fair price.
Buying a new car hasn't been easy for a while, but the final bill at the dealership often stings more than expected. Consumer Reports looked into typical dealer add-ons and fees and came to an unpleasant conclusion: extra items can add over $4,000 to the price of a car.
One of the priciest items is the extended warranty. In some cases it can be useful, like when buying a used car with expensive repairs and questionable reliability. But for a new car, Consumer Reports suggests starting by choosing a more reliable model rather than paying upfront for fear of breakdowns. Even smarter: set aside money for possible repairs yourself.
Another common add-on is rustproofing. According to CR, dealers may charge around $800 for it. The thing is, modern new cars already get corrosion protection at the factory, so additional treatment often provides no real benefit. The same goes for interior protection: instead of an expensive dealer package, you can buy a basic fabric protector for just a few dollars.
There are even stranger services. For instance, VIN etching for $200–300, even though the identification number is already stamped on the car at the factory. Or nitrogen in tires for $400, even though regular air is mostly nitrogen anyway. For most drivers, the difference doesn't justify the cost.
A separate risk zone is fees for paperwork and vehicle preparation. Registration and documentation can indeed cost money if the dealer handles them. But charges for 'advertising,' predelivery inspection, or washing before pickup are questionable: such expenses are already built into the car's price or the destination charge.
The most annoying item is the market adjustment—a markup above the recommended price due to high demand. Sometimes it's almost unavoidable if the model is new and in short supply. But other add-ons can often be negotiated, removed, or you can simply walk away and go to another dealer.
The main trap of dealer add-ons is that each one seems tolerable on its own. But together they add up to an amount that could cover insurance, a set of tires, or several months of loan payments. It's important for buyers to look not just at the car's price on the website, but at every line in the final contract.
