Canadian car buyers face a fee structure that's different from the US — and varies significantly by province. Understanding what you're being charged, what's legitimate, and what's negotiable can save you hundreds to thousands of dollars on a vehicle purchase.
Freight and destination
Freight (also called destination or transport) is the cost of shipping the vehicle from the factory to the dealership. This is a legitimate, non-negotiable charge — dealers pay it and pass it through. For vehicles assembled in North America, freight typically ranges from $1,500 to $2,000. For vehicles imported from Europe or Asia, it can be significantly higher.
Freight is always charged on new vehicles. It's not a dealer fee — it's a manufacturer charge, and you'll see it listed on the Monroney sticker (window sticker) as a separate line item.
PDI: Pre-Delivery Inspection
PDI (Pre-Delivery Inspection) is the dealer's charge for preparing the vehicle for delivery — checking fluids, removing shipping protection, doing a final quality inspection. PDI is a legitimate service, but the amount dealers charge varies considerably: $300 to $1,000 is common.
Unlike freight, PDI is somewhat negotiable. Ask what it includes and whether any amount can be reduced. Some dealers will discount it as part of a broader negotiation.
Admin / documentation fee
Every Canadian dealer charges an admin or documentation fee for processing paperwork. These fees range from $100 to $800 depending on the dealer and province. In some provinces they're disclosed in advertising; in others they only appear when you sit down to talk numbers.
Admin fees are negotiable in some dealerships and non-negotiable in others. It's worth asking — the worst they can say is no.
PPSA registration
PPSA (Personal Property Security Act) registration covers the lender's security interest in the vehicle when you finance. The actual government registration fee is $8–$50 depending on province. Dealers sometimes charge $50–$200 for this service, marking up the cost of something that takes minutes to file.
Ask for the actual PPSA registration fee and challenge any significant markup. In Ontario, the registration fee is under $10.
Taxes: GST/HST and PST
Federal GST (5%) applies in all provinces. In HST provinces (Ontario, New Brunswick, Nova Scotia, PEI, Newfoundland), a single HST replaces both GST and PST. In other provinces, you pay GST plus a separate provincial sales tax.
In Quebec, both QST and GST apply. In BC, PST applies on vehicle purchases. Alberta has no provincial sales tax, making it one of the least expensive provinces to buy a car from a tax perspective — which is why some buyers purchase in Alberta and transfer registration.
Private sale transactions have different tax treatment than dealer purchases in most provinces. In Ontario, for example, a private sale is subject to RST (retail sales tax) calculated on the higher of the purchase price or the Canadian Red Book value — this prevents buyers from claiming artificially low purchase prices.