A standard sales agreement for a new vehicle has a few government and industry fees. These include:
- Tire Fee – a provincial recycling fee currently set at $4/tire
- AMVIC Fee – stands for Alberta Motor Vehicle Industry Council Fee currently set at $6.25
- GST – Federal tax currently at 5%
- PPSA Fee – is Personal Property Security Act set by the lending financial institution and it ranges between $10-30
Some dealerships also add a “Documentation or Administration Fee” and this fee is set independently and we have seen it range from $150 upwards to a staggering $9,500. It is staggering because dealers add this fee to cover administration time and office services such as photocopying. Zarowny Motors does not have a documentation or administration fee on sales agreements. Our philosophy is to provide exceptional customer service by making the sales process simple and fair.
Another portion of the sales agreement deals with warranty offers and personal insurance options. These are not mandatory but, if chosen by the customer, add to the total purchase price. Please note that a manufacturer’s additional warranty is set with a suggested retail price but dealerships, at their own discretion, can go above this price.
Buying a vehicle is a big decision and having confidence because you have contract knowledge before signing is key. Be diligent, take time and ask questions. Zarowny Motors wants the very best for you.