As the buyer or potential buyer you should be sure you fully understand what you are paying for.

A salesperson and/or business must not mislead you into believing a fee is mandatory or required by law if it is not.

AMVIC does not encourage or discourage businesses from selling additional features and add-ons, however they must accurately disclose all fees. All fees should be disclosed during the negotiation process and not after the purchase price has been established.

Remember– when an AMVIC-licensed seller advertises the price of a vehicle they must advertise the all-in price. The only mandatory fee that can be added to the advertised price is 5 % GST. If a consumer chooses to finance a vehicle purchase, separate financing costs or charges may also apply.

Mandatory government fees (non-negotiable, must be paid by the customer):

  • GST (Goods and Services Tax) 5%

Examples of other fees:

  • AMVIC levy ($6.25)–  It is mandatory that the business pay the AMVIC levy. AMVIC uses levy revenue to fund the AMVIC Consumer Compensation Fund and to provide investigation and education programs. The business can pass along the cost of the levy to the consumer, but it cannot be presented as a mandatory government fee.
  • Advance disposal surcharge (tires)–$4/tire for cars and light trucks. $9/tire for rim sizes greater than 19.5” for use on larger vehicles. Under the Environmental Protection and Enhancement Act Tire Designation Regulation and the Tire Recycling Bylaw, environmental fees must be remitted by a supplier when new tires are sold in Alberta or used tires are imported into Alberta from outside of Canada. This includes tires that are on a motor vehicle. More information on bylaws can be found at the Alberta Recycling Management Authority.
  • Administration/dealer fees.
  • Third-party warranties.
  • Vehicle add-ons such as paint protection, etching or any add-on that is not factory installed.
  • Air Conditioning levy– The Canada Revenue Agency levies an excise tax of $100 on vehicles imported or manufactured in Canada at time of delivery to the purchaser, in most cases the automotive dealer. If the amount is being passed down to the consumer, they must be aware that it is a recovery of the levy.
  • Any and all other fees or charges except GST and the tire levy.

What to do:

  • Document pre-purchase discussions and figures.
  • Be certain you understand what all extra fees are for.
  • Compare the all-in, or final price of the identical vehicle at other businesses.
  • Slow down, take your time to decide if the sale is right for you.
  • Check with AMVIC to ensure the seller is registered and the business is licensed.
  • Contact AMVIC if you have any concerns or need information.

Misrepresenting fees or failing to disclose additional fees can be in contravention of the Consumer Protection Act (formerly the Fair Trading Act) which can result in various enforcement actions such as charges, an undertaking or administrative penalties. If you believe this may have occurred file a complaint on AMVIC’s online portal.