Understanding Mandatory Fees and Dealer Fees

Buying a new car can be stressful, especially if you haven’t done it in over five years. There’s the issue of choosing a colour, make, extra features (if you want them), and of course the messy business of negotiating a price. If you don’t do the research before heading to the dealership, you could fall into a trap many buyers before you have succumbed to and leave the dealership with much more than you bargained for, and not in a good way.

Before you even start talking to a salesperson, arm yourself with enough knowledge about the car to reduce the likelihood of you getting taken for a ride (no pun intended). The first thing you need to do is the research on the car cost. Canada dealers get their units at wholesale prices. You can find out more about this via invoice price reports. Companies like Car Cost Canada offer invoice price reports at $39.95 while Unhaggle.com lets you access it for free. Once you get the factory price of the car, factor in what the dealer needs to make in profit and you can start benchmarking your price for negotiation.

Next, it is also important to understand which fees are mandatory and which fees are optional dealer fees that can be negotiated out of your purchase. The more information you have, the better your chances are of getting a reasonable price, and one that you can be happy with.

Here’s a quick rundown of the mandatory fees you’ll need to pay when purchasing a car according to the Ontario Motor Vehicle Industry:

1. HST or Harmonized Sales Tax – 13% on car price
2. Air tax – Air conditioner excise tax of $100 for cars with air-conditioning
3. OTS tax or Ontario Tire Stewardship fee – For passenger vehicles and light trucks the fee is $5.84 per tire
4. OMVIC fee – A transaction fee to support OMVIC’s (Ontario Motor Vehicle Industry Council) dispute resolution activities
5. PPSA fee – If you finance/lease a car, the bank/leasing company will charge a fee for setting up the loan and registering the lien $50 to $75.
6. Licensing – Most dealerships will take care of this for you and will charge an admin fee of $50 to $75.

If it’s not listed above, consider it a dealer fee. An important thing to remember is that mandatory fees should not be added to the car’s price after you’ve negotiated it, it must already be included. The same goes for advertisements that include the price of a car – whatever is advertised should be the all-in price.

Don’t be pressured into buying additional products or features you don’t believe have value. If you’re being made to believe that a certain add-on is compulsory because it’s already been installed, you have the right to report them to the OMVIC for deliberately misleading you.

Dealer fees and add-ons like security packages which include a police traceable code in case of theft could already be part of your insurance coverage so make sure you do the due diligence and read your contracts before signing them.

A great way to avoid paying for more than the car is worth is to do extensive research online and see what other people are paying for the same car. Find out also if there are any on-going Canadian dealer incentives that you could take advantage of.

How Often Should You Wash Your Car?

The frequency of car washing can be a dilemma. Sometimes it is necessary to wash a vehicle more often due to outdoor parking, environmental contaminants, and natural plant life involved. Sometimes it is better to wash a vehicle less often like when living near a desert or beach. Experts recommend different lengths of time from every day to once a month. However, a month is the absolute longest that a vehicle should ever go.

Washing Daily

There are several reasons that a person might want to wash their vehicle on a daily basis especially if it is necessary to park or drive in unfavorable weather. This is true for places that receive a lot of snow in the winter and have high amounts of salt on the roads; where the salt washes up onto the under-body of the vehicle. Vehicles that spend a lot of time parked in or near industrial parks, high contamination areas, or close to areas with excessive amounts of pollen can also benefit from daily washes. Vehicles that travel far distances should be washed more often as well. Having a long commute means more bugs, debris, and pollen that collect on a vehicle. Travelling highways increases contaminants because the speeds are usually higher.

Washing Weekly

People who live in a suburb away from contaminants can opt to wash their vehicle on a more acceptable basis. Washing a vehicle daily is a time consuming process unless a daily automatic car-wash is preferred. Most places recommend that drivers wash their car at least every two to three weeks. The reasoning behind this is because if it is too hot, your clear coat can be damaged significantly and if it is too rainy it can cause contaminants to cling to the vehicle. Either way it goes, it is best to wash a vehicle more often to be on the safe side.

Washing Monthly

Those that live in a very rural area and who do not suffer dust storms, sand blowups, heavy environmental debris and who receive rain on a regular basis can go up to a month without washing their vehicle. Most experts would recommend that this should be the longest that a vehicle should go between washing. In just the right conditions, a vehicle that is cared for properly including regular waxing can be kept clean for a months’ time. Washing on a monthly basis is helpful for people that have hectic schedules, who work long periods of time at once, or who cannot wash the vehicle more often.

Other Tips

Some of the most helpful tips that experts offer when vehicles owners are deciding on a vehicle wash schedule are looking at where one lives, works, and how often and far the vehicle travels. Paying attention to the number of factories, high pollen areas, and places that have a lot of snow can help set up a good car washing routine. Car wash frequency is important to keep acidic chemicals from eating through paint and clear coat. It is also important for keeping contaminants, pollen, animal waste, and dust from eroding the vehicle paint job over a long period.

It is important to take a look at the surroundings that a vehicle spends the most time in before setting a schedule. Paying particular attention to high contamination areas like those with excess snow or near a lot of factories helps a vehicle owner decide car wash frequency. Car wash frequency should reflect the indoor or outdoor conditions of the vehicle, the ability of the owner, and the types of chemicals chosen. Experts always recommend reading the manufacturer’s instructions on any car wash cleaning agents.

How to Get Your Car Started In A Subzero Weather

If you are unable to start your car in a subzero temperature which has gripped most parts of the country, this is the good time to get your car started in this rigid weather.

NHTSA provides winter driving tips

The best thing to take car in order to start your car in freezing weather is to ensure that the charging system of the car’s battery is in good condition and the engine is operating on the oil recommended by the manufacturer.

According to Mike Calkins, manager of technical services for the travel group’s national office, suggests that the performance of your car in extreme weather will improve is an engine block heater or an electric battery blanket is added in the anti-winter battery. In winter, the functioning of car batteries are less effective whereas, the load of the engine is greater as the consistency of the oil is thicker. In case the engine is cranking slowly, then you should check the battery especially is the battery is being operated for more than three years.

He further added that the capacity of the battery reduces in winter temperatures. The electrons within the battery slow down and the chemical reaction within the battery which creates electricity is slowed down when it is cold. Moreover, the charging system and the alternator should also be checked along with the cleaning of the battery terminals ensuring that the cables are under good condition as well.

Making use of the right quality of oil is very crucial because most of the modern engines manufactured demand high viscosity oil like 5W-20 which have the consistency to flow easily in cold weather. On the other side, there are vehicles which demand heavier oils like 10W-30 however, according to Calkins, heavier oils impose strain on the battery and starter motor. Moreover, it can increase motor wear as flowing in a normal rate takes much time.

Installing electric battery blankets can help in reduce or prevent the loss of reserve cranking power that occurs due to frigid temperatures. The prices vary from 425 to that of $100.

Another effective thing can be the engine block heater as its functioning is to provide warn air to the heater which not only defrosts outlets but, makes the engine easy to start as well. Alaska and anchorage are the cities where engine block heaters are used the most. Their prices vary from $150 – $200 inclusive of installation. A traditional way of dealing with cold weathers is to use alcohol-based gas-line antifreeze which tends to absorb moisture within the fuel system however; nowadays they are not much useful. Calkins also refused other traditional methods such as covering the car hood with a blanket or tarp along with parking the car in shelter.

Other recommendations given by related to winter driving includes:

  • The defroster and the heater should be under perfect working conditions so as to protect the windows and the windshield to get frosted up.
  • The cooling system should be a combination of water and antifreeze so as to enable freeze protection.
  • Emergency gear system should be installed even if the car is under proper winter maintenance.