12 Fees to Never Pay at a Dealership

Buying a car is an exciting yet often overwhelming experience, especially when it comes to navigating the myriad of fees that can be tacked onto your final bill. While some fees are standard and unavoidable, others are unnecessary add-ons that can significantly inflate the cost of your new vehicle. Understanding which fees you should never pay at a dealership can save you hundreds, if not thousands, of dollars.

Here at Mike’s Car Store, you know we always have your best interest at heart. In this guide, we'll break down the 12 most common fees that you should be wary of and provide tips on how to negotiate your way to a fair deal. Whether you're a first-time car buyer or a seasoned shopper, this information will empower you to make a more informed and confident purchase.

#1 Paint Protection

Paint protection plans actually come at no cost to car dealerships. Not to mention they typically won't use a quality ceramic coating product, nor will they follow up with you to ensure its held up. The best way to get paint protection is truly to go to a third-party detailing company that specializes in ceramic coating.

#2 Delivery and Destination Charges

While destination charges are mandatory on all new vehicles, many dealerships will put ripoff stickers on their vehicles to unknowingly get you to pay the charge twice. This extra charge exists only to profit the dealership.

#3 Blinking Brake Lights

Costing upwards of $500, dealerships may often pitch blinking brake lights to you under the guise of a safety feature that can reduce collisions on the road. Do a quick Google search, and you’ll find that there is no real data to support this claim. In fact, the only data available is research from the 1990s that shows there was little to no reduction in rear-end collisions for those who used the blinking brake lights. Moreover, if a dealer were to install one of these on your car, it would likely void your manufacturer's warranty.

#4 Credit Life and Disability Insurance

This offer typically comes up during the financing stage of your vehicle purchase. The finance manager will likely ask you, “In the event of your untimely death, who would you prefer the free and clear title to go to?” This is a clear indication that you’re about to get scammed. Truthfully, the coverage is not worth the cost of up to $60 monthly.

#5 Dealership Prep and Reconditioning Fees

Used car dealers will often try to bring this up once you’ve found yourself in the showroom and, at times, won’t be clear about it beforehand or on the website. (This is another reason why we don’t suggest negotiating on the showroom floor!). While dealers may tell you these fees will go towards cleaning, reconditioning, and filling up your vehicle’s tank, the truth is that most, if not all, of these fees are reimbursed to the dealership by the manufacturer.

#6 GPS/Tracking System

Many dealers will try to get you to purchase a third-party GPS system. These are unnecessary and overpriced additions. Not only do most newer models these days come with their own GPS systems made by the manufacturer, but if you’d really like this feature on your vehicle, you can easily find one online that’s easy to install and priced much lower than the dealer’s.

#7 Theft Protection

Protection packages or insurance plans are a clear scam that won’t actually help you in the event that your car gets stolen. You won’t be able to find much proof of any coverage based on these bogus protection plans. The plan typically involves VIN etching, which is something you can do to identify your vehicle as your own. We’d recommend having this done yourself rather than through a dealership, as it won’t be worth the cost.

#8 Vehicle Accessories

Particularly for truck owners, it's easy to get scammed by dealerships that suggest add-ons and customizations directly from the automaker. From side steps to tonneau covers, you’ll save a lot more and get the same quality product when you purchase these accessories from the true manufacturer.

#9 Tire/Wheel Protection

Running you an extra $1000 or more, you have to be careful with these types of protection plans as the scam is truly in the fine print. These plans claim to protect you against tire damage caused by road hazards, which are not as common as you think and are not easy to prove.

#10 Additional Dealer Markups

ADMs typically refer to the markup on the vehicle’s purchase price above what the manufacturers suggest due to a lack of availability. These markups can run you anywhere from $50,000 to sometimes $100,000 more than you should be paying and are purely promoting the dealership.

#11 Dent/Ding Package

Small dents and dings are often inevitable after a few months of owning your new car. Dealers will often try to sell you on this package for peace of mind. But the truth is, not only is it a difficult reimbursement process, but the upfront cost of the package is usually more than the dent repair cost.

#12 Key Replacement

Car keys can be quite overpriced these days, sometimes going up to $500. This has allowed more dealers to use this key replacement add-on to trap customers. The cost of the add-on is typically more than what the replacement keys will cost directly from the manufacturer. Here at Mike's Car Store, we always give our customers a second pair of keys if we can obtain them. We also work with Tom’s Key Company, which can help you find a replacement key at nearly 80% lower than what the dealerships will quote you!

As a Lousiville, KY dealership run and owned by the #1 watched Car Salesman on the Planet, you can trust we know how to get you the best deal on a used vehicle and be as transparent as possible in the financing process. We’re here for you before, during, and after the sale of your car. Even if you’re working with another dealer, we’re committed to protecting our customers. Browse our inventory of high-quality used vehicles today at Mike’s Car Store.