What are Admin Fees and When are they Acceptable?

August 14, 2023

Whenever I negotiate a vehicle purchase from a dealership, I always tell them that we aren’t interested in any administrative fees, and any that are mandatory, are included in my offer. So what are these fees, and when are they acceptable?

A few years ago, Ontario became like a lot of other jurisdictions in that they began mandating advertised pricing of cars be inclusive of all fees except for tax. This theoretically should have killed off admin fees and yet several years on they are still with us.

Let’s take a step back and clarify what are not dealer admin fees. On a brand new vehicle, you will always pay freight and PDI. These are government-approved fees set by the manufacturer to cover the cost of delivering the vehicle to the dealership, and the prep work done by the dealer. They are standardized across the country, so if you are buying one of the many made-in-Ontario vehicles available today and you live within 100kms of the dealership, you are paying the same fees as someone who lives on the other side of the country.

On a new car, the only fees on top of the MSRP (manufacturer suggested retail price) are: freight, PDI, sales tax, registration, and a local motor industry council feel (in Ontario it is $10 for OMVIC.) Everything else needs to be included in the advertised price.

So what are admin fees and why are they still with us? Honestly on their simplest level they are a slush fund for dealerships. They are a way to get a certain sum of money on each vehicle purchase. Most dealerships being run by people trying to move forward with the times no longer charge them. Instead, modern dealers who still like to keep up with the times while throwing money into a slush fund like to include a particular “value package” on every car they sell. Generally the name of it is the dealership owner group followed by “value package”. It generally includes a combination of the following: locking wheel nuts, security etching/extra insurance see last week’s post, rim/tire coverage,and/or nitrogen in the tires. This usually costs somewhere between $250 and $600.

Again, the most ethical dealers will not make this mandatory, but some will have this package or administration fees listed in their all-in price. This is perfectly legal, and allows them to get money into their slush fund without performing a bait and switch. A side-effect of this however is when we look at the bill of sale, we will see fees with big numbers attached, causing panic and confusion, before realizing they have taken it out of the selling price.

I have had dealers agree to an all-in price before coming in to put down a payment only to see $400 in undisclosed fees thrown on top of the agreed-upon price. This leads to a short argument when I remind the staff that this is illegal in Ontario and they can either do the deal we agreed to, or, we will walk out and report them.

I always prefer the dealer who doesn’t charge any fees, and plays things straight. Naturally The Car Nerd is available for your entire purchase process, or just the negotiations. Reach out today!


Warranties, Snake Oil, and, Protection Packages; Things I Advise Considering and Those I Decline in The Finance Office

August 5, 2023

I was sitting in a dealer’s finance office today going over the bill of sale on a Honda Insight with my clients when the finance officer made us an offer on a product we had already declined. He offered an extended warranty backed by the manufacturer, at half the price of what he offered it to us at a few days ago, so we took it.

Extended warranties from the company that original built the vehicle we are buying are one of the few things I will generally even let the finance person tell my clients about. When you buy a vehicle, from a dealership, the, store management generally prefers to first exhaust you with the purchase of the vehicle and price. Then after protracted negotiations, they move you into a finance office to go over add-ons. Even if you are buying a vehicle with cash, the finance person goes over all the add-ons. I generally try and get the add-ons priced out in the initial negotiation to make things more holistic and increase our bargaining power. This also speeds things up and puts them on the back-foot. Their exhaustion tactic does not work on me.

These upsells generally fall into three categories: snake oil from third parties, protection plans from companies pretending they are not insurance companies, and manufacturer-backed warranties, protection plans, and service contracts.

The first category is the easiest to dismiss. They are goods sold by companies that promise to protect your car from various nightmares, such as: rust, sun-damage, interior wear, etc. They promise to do these things with chemical treatments, or sometimes even, electronic modules based on widely disproven pseudo-science.

Next, protection plans from companies that claim they are not insurance companies but are basically selling you a flat-rate, anti-theft systems they offer are usually simply stickers, and acid etching in parts. Yes these make it easier to track stolen car parts, but these days, stolen cars don’t usually get chopped up, they get exported. Also they usually promise that if you sign up for this service, and your car is stolen but either not recovered or deemed a write-off, they will give you an extra payout on top of your insurance (the sum varies by dealer but ranges between $3,000 and $6,000). Dealers also offer protection for dings and scrapes.

This started as something offered to lease customers who needed to return their vehicles in mint condition. I generally find that the fine print on dent and scrape coverage makes it unlikely that customers will get their money out of their initial investment. Because these are generally offered and backed by a third party contracted by the dealership, you will be dealing with the third party every time you make a claim. I rarely recommend buying anything provided by a third party as I know how reluctant they are to pay out for claims.

That is the crux of these protection plans, they are investments for you to get your money’s worth. Now that modern car key fobs are generally over $400 to replace and sometimes double that price, dealers offer fob loss or damage replacement. If you are the kind of person like my father who on multiple occasions dropped his car keys down an elevator shaft, or you have young children who are obsessed with your car keys, and you expect to realistically spend more on replacement keys than the price of this protection plan, it is worth considering. But I have as yet to meet a person who genuinely needs it.


Wheel and tire protection is a plan I sometimes say is worth considering, especially as they are sometimes (but not usually) backed by the manufacturer of the car. Now I am reluctant to usually recommend these because the companies that sell these don’t want to pay out on them. If they do need to replace a tire, they certainly don’t want to replace two of them, which is what you generally are supposed to do. Unless you are replacing a nearly new tire, you need to replace tires in at least pairs. Certain vehicles with very sophisticated 4WD systems such as Jeep Grand Cherokee need their tires replaced four at a time. But this is generally the cutting edge of serious 4WD vehicles. I don’t want to see my clients pay out for a tire protection plan, get a blowout, and then be told that while their tire is half worn, the plan will only pay for one tire.

I once bought a wheel and tire protection plan from a dealer on one of my own cars despite the fact that it was provided by a third party. I did so because I have a habit of sometimes scraping against curbs when parking, causing cosmetic damage to my rims. I was assured by the finance officer that this plan would give me unlimited cosmetic repairs to my rims. When I first curbed my rim, I pulled out the contract to find that the dealer had skipped the cosmetic coverage. A few calls later, I arranged for the dealer to reimburse me for the package they had misled me about. Dealers can also scare customers with stories of complex windshield replacements and some offer windscreen coverage. Most windshield damage if repaired quickly can be fixed in under 15 minutes by drilling and filling the chip in the screen. The repair is usually invisible and costs under $30. That being said, I understand why some people pay for this coverage, even against my advice because it offers peace of mind.

Now onto the real deal warranties. The finance person will sometimes offer third party warranties on used cars. If you are buying a used car from a dealership that does not sell new cars, or does not a dealer for the brand of used car you are buying, these third party warranties will be your only offer. I generally decline them. You don’t want to be fighting with a 3rd party if your transmission fails and they try to deny payment because you don’t have a receipt for a cabin air filter change last year.

For my clients buying cars at certain price points (those who are shopping in the nearly new space) I generally advise buying their vehicle from a dealer that sells new vehicles from that brand. This means you may be able to buy a factory certified pre-owned vehicle (a used car that meets certain standards set by the manufacturer and qualifies for warranty programs and finance discounts). Today’s Honda was a Honda CPO car with an extended warranty that covered the powertrain and hybrid system for seven years. When they first offered an extended bumper to bumper warranty (covers the entire car as new) we declined because we simply didn’t think we would come out ahead after the hefty price tag. But with today’s discount, and factoring in the years of roadside assistance provided, one or two moderate repairs and it will have paid for itself.

I have dried out my throat on at least one occasion repeating “no” to a finance officer trying to upsell us an on extended warranty that costs 10-30% of the price of the car, and is justifying it by quoting absurd repairs that would never happen in the real world (replacing an entire 360 camera system including the display, wiring, and all cameras.

I am here to help my clients weigh their options, see what makes sense and what offers peace of mind at a good price. If you want my assistance, reach out today.

Had your Car Written off? The Car Nerd Will Help you get a Fair Value

November 24, 2022 

Last week I got a call from a gentleman first thing in the morning. His car had been stolen the night before. He asks me to help him find him a new vehicle. As always, the Car Nerd is here to help someone in need find a new machine. I did however point out that he would likely have to deal with negotiating a value on his car. I of course offered to help him deal with the insurance company to get a fair payout. 

Over the years I have assisted many clients in getting a fair value for their cars and motorcycles after they have been written off by insurance companies, or stolen. As part of any standard package with the Car Nerd, you will receive absolute white glove service to find comparable vehicles to your own, and we will go toe to toe with your insurance company to get you a fair value. We can even provide written appraisals for insurance purposes. 

Don't take their first offer. Reach out to the Car Nerd, and we will get you a fair value, as step one of getting you into your next car or motorcycle. Reach out to the CarNerd.ca today!

Car Nerd Does Classics

April 28, 2022
Never worry about vapour lock again!

Being a member of Generation Y, I did not have a lot of experience in youth with carbureted cars. But, thanks to the Simpsons, I did learn about the perils of vapour lock and flooding an engine.
Now, as a professional Car Nerd, I have the opportunity to help my clients get into the world of having a second vehicle as a toy.
Perhaps you have been contemplating picking up a classic car, or maybe a classic scooter or even a modern motorcycle, The Car Nerd has you covered. Maybe you already own a classic car that you have to battle every time you want to take it for a weekend drive. Well again, you are covered. I can manage an upgrade program where professionals replace your old school ignition system with a digital unit, your carburetors with fuel injectors, and your old broken air conditioner with a modern unit. We can even investigate converting the vehicle into a modern full electric EV. You would be surprised how broad the market is for off-the-shelf updates for popular classic vehicles.
We will discuss goals, available upgrades, and budgetary options, and all you have to do is hand over the keys and let me go to work. You will find your vehicle to be much more reliable, so you can enjoy more sunny drives with it. If you don’t have a classic yet, we can figure out the perfect one for how you want to use it, and find just the right one. Every budget, and purchase is unique, so pricing is as well. If you want a toy, don’t hesitate to reach out today!

Common Misconceptions About Family Cars

February 3, 2022


A large volume of my clients are families looking to replace a usually worn out compact car that one parent has owned for over a decade. They usually tell me that they are looking for an SUV or crossover or even sometimes a minivan.

Most of the time, they end up surprised with options they had not even considered. Here are some common misconceptions about family cars.

1. You need a brand new car to have the safest vehicle on the road.
Actually, there are plenty of vehicles with all the latest safety technologies that are over five years old.

2. Bigger vehicles automatically mean safer.
Actually, smaller, nimbler vehicles are able to maneuver more quickly and stop in a shorter distance to avoid collisions in the first place. On top of that, body on frame SUVs and pickup trucks are not able to utilize crumple-zones with the same efficacy as unibody construction cars and crossovers.

3. You need all-wheel drive because this is Canada.
If you got by just fine in your front-wheel drive sedan for nearly two decades, you likely don’t need all-wheel drive.

4. You cannot fit two car seats in a compact or subcompact.
Now this is actually a matter of height. Sitting in front of a forward-facing car seat (like most children switch to once they are a couple of years old) is not a problem in most cars for most people. But at least three times a year I get a call because somebody has a little one on the way, and one parent is over six feet tall. Having two children in rear facing car seats in any vehicle smaller than a mid-size with parents over six feet is not pleasant. But this doesn’t mean a minivan or a full-size SUV is needed. On the contrary, midsize cars, and crossovers have been doing this job for decades and do so with aplomb.

5. You need a crossover or a minivan.

If you just want a crossover or a minivan, I fully support that. But after test drives, and comparing fuel economy, and sticker prices, many of clients with small families do what families have been doing for generations, and they buy a practical, reliable, station wagon. Generally this costs less than what they budgeted for a crossover and is equipped more luxuriously.

6. You have to do this by yourself.
New parents don’t need to spend their brief moments of free time researching cars. That’s what I am here for. Don’t delay, and don’t delay, and contact me today!

Driving on your Winter Tires All Year? Time to Switch to All Weather Tires!

February 3, 2022

In late autumn of 2021, I helped a nice young family get a new to them, Volkswagen Arteon. When I was speaking to the father of the family about winter tire options, he told me he just kept his old snow tires on his rapidly decaying fourth generation Jetta all-year long, because they seemed like the safest tire out there. After letting out a large sigh that reverberated throughout my entire body. I then set about explaining all-weather tires, summer tires, tire compounds, and stopping distances.

Let’s start with the basics. There are different tires, for different purposes. All season tires (which are more like three season tires) are made of a compound that turns hard and loses grip right around 7°. Then there are different tire tread patterns for different purposes. Be they studded for icy roads, siped for channeling water in Vancouver, or with a tread that cuts through deep Quebec snow. Drivers in the Golden Horseshoe of Ontario generally benefit from winter tires that are designed to cut through some deep snow but also have a tread designed to work well on dry, cold pavement. I will let the always eloquent Mr. Rick Mercer explain why there is no such thing as a true all season tire in Ontario.

In Ontario, insurance companies are required by law to give drivers a discount if their vehicle is equipped with tires that posses that snowflake mountain logo. A M+S mud snow rating is not the same thing. All winter tires are M+S rated, but as an M+S rating is a lower level accreditation, not all of those tires are snowflake rated winter tires.

Running your snow tires in the warmer months will lead to them wearing out much faster, and believe it or not, they aren’t as effective at stopping in those months, than a tire designed for warm weather. But having two sets of wheels and tires is something many people just don’t want to or cannot deal with.

If you are in that camp, what you need are all weather tires. All weather tires are not to be confused with all season tires. They are relatively new in the tire world as they have not been around even as long the iPhone. A few companies make them, so you are certainly going to be able to find a set to fit your car, van, SUV, crossover, or pick up truck.

They are made of a compound designed to be used all year, and are cut with sensible treads for use in all weather. While they aren’t necessarily as effective in winter weather as full on winter tires, they still possess that snowflake logo, indicating their winter capable design. Their compounds won’t wear out in summer months, nor will they freeze up in colder weather. So how do you find all weather tires right for your vehicle? Well, I provide tire sourcing as part as my all-inclusive packages for my clients. Alternatively, you can use any number of Canada’s many tire resources to find “all weather” tires in your vehicle’s sizes. If you want your perfect vehicle to get you through the winter don’t hesitate to reach out today!

Why Vehicles Prices will Remain High in 2022

February 2, 2022

At least once a week I get a client asking me if I knew that cars are priced higher at the moment due to the pandemic. When I explain that yes, as a professional I am well aware of current pricing trends, they often ask me why vehicles are priced at a premium right now.

Rather than offer an overly-technical explanation and watch my client’s eyes glaze over through video chatting software, I offer this simple, brief, explanation. In the first quarter of 2020, when everything shut down, including automakers, and their suppliers, or when they switched over to making ventilators and PPE for a few months, vehicles were not being assembled at all. This meant new vehicles were not being built for a period of several months. It was during this time that the majority of automakers notified their semi-conductor/microchip suppliers of greatly reduced orders due to expectations of a greatly reduced demand over the coming year.

Well the chip suppliers took these now excess chips and sold them to manufacturers of fitness equipment and electronic entertainment. By the second half of 2020, the economies of North America and Western Europe were coming out of hibernation. People who had traditionally relied on public transit no longer felt comfortable using it. At the same time, remote work had enabled an exodus of formerly urban people relocating to more suburban and rural areas where cars are necessities.

At the same time, people who were planning on trading in or selling their current cars to upgrade aren’t doing so because of economic uncertainty or just lack of new car availability. When the automakers asked for an extra-large order of chips they were effectively told to go to the back of the ordering line.

So here we are in early 2022. While last year vehicles were in short supply, the supply chain is recovering. While cars still won’t be stacked tall on dealer lots and selling cheap, they will be more available as the year rolls along. By the first half of 2023 the supply chain will have hopefully normalized.

In the mean time, vehicles including: cars, trucks, SUVs, crossovers, minivans, pickups, and motorcycles are all priced at a premium. So if you are looking to purchase your next vehicle, and you want to avoid overpaying, while still getting a vehicle you love, reach out today!

Prototype Spotting in Toronto

October 18, 2017

Occasionally I am lucky enough to see a manufacturer prototype out in the wild. Engineers from automakers test the cars in the real world, years before they go on sale. This is a prototype of a GM compact car related to the Cruze, using an engine that runs on compressed natural gas or CNG. I spotted it while out for dinner with friends.

Follow the link for a video too.

CNG powered Astra Prototype Spotted in Canada (With Video)