In Canada, we're pretty used to paying more than the price we see on a price tag. In Ontario, sales tax is now 13%, meaning whatever the price you see is, add 13% to it for your final price. But when you are looking at buying a new car, you'll usually see a set of fees that you hadn't seen before.
What the fees are called might vary depending on the dealership, but most often they'll be called "delivery and destination" or "freight and PDI." But what does that even mean? What are these fees and why do you have to pay them?
Freight, or destination, is the charge for getting the vehicle from the factory to the dealership. This could involve shipping the vehicle from across an ocean, driving a vehicle across the country or packing something up a bit more delicately. Manufacturers set the freight price based on the nameplate for the vehicle, so no matter where you are, you'll pay the same price. Many vehicles are not manufactured in Canada, so this set fee ensures that even if the vehicle is shipped from somewhere overseas like Japan, you'll still pay that price. These costs are also standard across the country, so someone in B.C. will be paying the same fee as someone in Ontario. This fee will usually be higher with bigger and more luxurious vehicles, as the cost to transport them will be much higher than a regular sized vehicle.
PDI (Pre-Delivery Inspection)
PDI, or delivery, is the charge for a technician at the dealership to inspect the car to make sure it has no cosmetic or mechanical issues. Just because a vehicle is brand new from the factory, doesn't mean it's ready for you to take home. It's also for the wash crew to run the vehicle through the car wash and make sure the car is presentable for the new owner. They'll also apply any final touches they need such as filling up the gas tank and topping up fluids.
While the MSRP (Manufacturer's Suggested Retail Price) is the most common price you'll see in many commercials and advertisements directly from a manufacturer, that price doesn't show the whole picture. At Weins Canada, we practice something called "All-In Pricing." This means that the price we advertise includes the MSRP plus all fees, except for HST and licensing. So the prices you see on any of our dealer websites include the freight and PDI fees. This practice makes it easier for you as a customer to know exactly what you're going to be paying for a new car.