New Vehicle fees, fees, fees

Fees are everywhere! From the recycling fee when you buy a can of Coke to the administration fee when you pay your cell phone bill.

Extra fees have seemingly become more commonplace. And they are universally despised.

Consumers are a little more forgiving however if they understand what the fees are exactly. We are going to attempt to explain what you see on a bill of sale for your newly purchased vehicle.

Vehicles purchases are the same as any other product and are subject federal taxes. The dealer collects and pays the GST to the government. This tax is non-negotiable and must be paid by the customer.

Air conditioning levy
The Canada Revenue Agency levies an excise tax of $100 on vehicles sold with air-conditioning. This is a mandatory fee paid to the government.

Advance disposal surcharge (tires)

The advance disposal surcharge for tires is a mandatory environmental fee that must be paid when new tires are sold in Alberta. The fees are $4 per tire for cars and light trucks and $9/tire for rim sizes greater than 19.5” for use on larger vehicles.

AMVIC is the Alberta Motor Vehicle Industry Council and is Alberta’s automotive industry regulator. AMVIC charges a levy of $6.25 to fund the AMVIC Consumer Compensation Fund and to provide investigation and education programs.

Freight and Delivery
This is the cost of shipping a vehicle from the point of manufacture to the dealership. The manufacturer charges the cost of the freight and delivery to the dealership.

Pre-delivery Inspection (PDI)
The pre-delivery inspection involves a very long list of items that are checked on the vehicle to ensure that it is fully functional before being delivered to the consumer. The manufacturer sets the fees charged for the PDI.
At Country Hills Toyota we check the following before you get your newly purchased vehicle:

  • Check the lights and signals
  • Check the windshield wipers and fluid
  • Check the power outlets
  • Check the audio system and setting the clock
  • Check Toyota park assist system
  • Check the Rear View Monitor System
  • Check window operation
  • Check door locks including each wireless remote control
  • Check that the engine starts with all keys
  • Check the headlight aim
  • Check engine fluid levels
  • Check for fluid leaks
  • Check for fluid leaks
  • Remove anti-rust covers from brakes
  • Inspect tires for defects/damage
  • Activate tire pressure warning system
  • Install wheel covers/caps
  • Inspect nuts and bolts on chassis for looseness
  • Inspect under vehicle for damage/rust
  • Check engine operation
  • Check brake operation
  • Check steering operation
  • Inspect for squeaks, noises, vibration and rattles
  • Check heater and A/C operation
  • Check for fluid leaks
  • Check cruise control operation
  • Remove protective film and inspect paint
  • Install floor mats
  • Place Owner’s Guide and first aid kit in glove box
  • Wash and clean vehicle

Documentation/Administration fees
Because the purchase of a vehicle is heavily regulated by government and industry agencies it involves a lot of administrative work behind the scenes.

Below is an overview of some of the work involved:


  • Vehicle purchase contract
  • Bill of sale and/or lease vehicle contract
  • Tax forms (GST, tire levy, AMVIC fee etc.)
  • Safe vehicle forms (required by province)
  • NVIS form preparation for vehicle registration
  • Transfer of ownership documents (required by province)
  • Rebate forms (required by vehicle manufacturer and/or financial institution)

Financing and Leasing

  • Lien check carried out to ensure there are no unpaid liens
  • All available lending sources are shopped for the best available rates
  • Remittance of lien payouts if necessary
  • Transfer of equity and lease assumptions
  • Completion of paperwork to terminate finance/lease contracts


  • Preparation of factory or extended service plan documents and registration with suppliers
  • Administration of transfers and cancellations


  • Preparation of forms required by insurers
  • Administration of claims and cancellations

By the time the keys to your new vehicle are handed over there will have been several people involved in finalizing the purchase. We hope we’ve given you a better understanding of the fees that are involved with a vehicle purchase.