This Is How Car Dealers Rip You Off

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What is the number one way that car dealers rip you off? That’s what we’re going to find out.

Welcome to Car Help Corner, where we help you, the consumer, master the process of car buying and ownership.

As many of you know, as a consumer advocate and consultant, I negotiate tons of car deals for consumers. In this video, I’m going to share three of the worst deals I saw in 2025—deals so bad, I honestly couldn’t believe a dealer would try them. Or then again… maybe I can.

Because the number one way car dealerships rip you off is price gouging—taking advantage of your vulnerability. If you don’t want that to happen to you, make sure you watch this video.

Let’s get right into the absolute worst car deals.

Car Deal #1: 2026 Kia Carnival Purchase Agreement

The first example is a purchase agreement for a new 2026 Kia Carnival.

On the left side of the quote you have payment options. On the right side is the most important part of any dealer quote: the price breakdown.

Here, we have a sale price of $54,995, which is the vehicle’s MSRP. Then below that are the dealer fees—and that’s where the problem starts.

When we break down the dealer fees, we can see this Kia dealership is charging a $5,000 market adjustment. That’s a straight profit markup on top of MSRP.

Below that, they’ve added what they call an “Alberta Climate Package” for $2,995, which tells you this dealership is in Alberta.

Then there’s an admin fee of $599 (also known as a doc fee), followed by small levies and a color charge, which are normal.

The real problem is the market adjustment and the climate package, which together total $8,000. That’s $8,000 in unnecessary markup and add-ons. If the consumer signed this deal, they would have been wildly overpaying and absolutely price gouged.

If you’re purchasing a new vehicle from a dealership, you must look closely at the price breakdown and get a proper written quote. If you see unnecessary dealer fees, markups, or protection packages you didn’t ask for, you need to make sure the dealership removes them.

This kind of practice is most common on vehicles with limited supply or long wait times—which is the case with the Kia Carnival in Canada. Some buyers may be waiting months, and some dealers try to take advantage of that. It’s not right.

If you encounter this, you either need to negotiate hard to get a fair price—MSRP or less—or you need to shop at a different dealership.

One more important point: anytime you order a new vehicle that has a long waiting period, you need to make sure you have a signed purchase agreement with the full price breakdown. That way you know exactly what you’re paying and there are no surprises when the vehicle arrives and the dealership tries to add extra fees or charges you weren’t expecting.

Always get the price in writing at the time you place the order. It’s extremely important.

Car Deal #2: Brand New Honda Civic LX Quote

The second example is a quote for a brand new Honda Civic LX, the base model Civic.

Again, the key is the price breakdown. The MSRP is $27,540. There’s a color charge of $300, which is fine. Then we get to the dealer fees.

The first dealer fee is an “anti-theft tire and rim nitro” fee for $637.

That’s $637 for essentially nothing.

“Tire and rim protection” is often a joke. Nitrogen tire inflation is not worth paying for. “Anti-theft” is usually just VIN etching on the glass. None of this provides meaningful value. It’s pure dealer profit.

Below that they’re charging $99 for wheel locks—nearly $100 for something inexpensive. Then floor mats for $120, which is reasonable. The standard levies are fine.

But then we get to more add-ons:

Undercoating/rust coverage: $988

Extended warranty: $3,484

And we don’t even know what undercoating product this is or whether it’s effective—only that the buyer is paying almost $1,000 for it.

When you add up all these products and dealer add-ons, you’re looking at over $5,000 added to a vehicle with a $27,540 MSRP. That’s nearly 20% of the vehicle’s MSRP in add-ons, which is outrageous.

Sometimes certain products can offer value—but you don’t have to buy them from the dealership.

For example, I do recommend rust protection in regions where salt is used in winter. Salt can cause serious long-term corrosion. But you don’t need to buy dealership undercoating at inflated pricing. There are excellent aftermarket options, like oil-spray rust protection from companies such as Crown Rust Control and others, which can cost around $160 and work very well.

Anytime add-ons total 10%, 15%, or—in this case—close to 20% of a vehicle’s MSRP, that’s a clear sign you’re overpaying.

Once you add taxes and mandatory fees, this quote pushes the Civic to nearly $40,000.

$40,000 for a base-model Honda Civic.

If the buyer goes through with a deal like this and then needs to sell the car a couple years later—especially if they financed long-term—they could end up in major negative equity.

Bottom line: don’t overpay, and don’t pay for products or dealer add-ons you don’t need.

Car Deal #3: Toyota RAV4 Hybrid LE Contract

Now for the third example—and I think this one might be the worst of all.

This is a contract for a new Toyota RAV4 Hybrid LE, the base model. This vehicle should cost around the high $30,000s plus tax, depending on location. But this contract is nowhere near that. It’s much higher because of an absurd number of dealer fees and products.

Let’s go through them:

Extended warranty: $3,349

Doc/admin fee: $999 (nearly $1,000 for paperwork)

Carfax fee: $66

(Why would a brand-new car need a Carfax fee?)

Rust protection: $3,000

(Something you can often get elsewhere for around $160)

Window tint: $600

Road hazard: $3,647

(No clear explanation of what it even includes)

Immobilizer: $1,800

(The vehicle already has an immobilizer—this is redundant)

“Clear Shield”: $1,300

GAP insurance: $3,263

Add that all up and you’re well over $15,000 in add-ons and fees—more than 25% markup on the price of the vehicle.

That is absolutely disgraceful.

And to make it even more insulting, the dealership listed a $500 discount at the top of the deal—trying to make it look like they’re giving the customer a deal, while adding over $15,000 in profit.

It’s unprofessional, unethical, and ridiculous.

The Big Problem: Tied Selling and “Mandatory” Add-Ons

All three of these deals have the same issue in common: the products, add-ons, and unnecessary fees were included automatically by the dealership.

They weren’t requested by the customer—and they were treated as mandatory. As in: “If you want the vehicle, you have to buy the add-ons.”

That’s known as tied selling: tying the vehicle purchase to additional products and fees you don’t want.

This is a major tactic to watch out for any time you’re buying from a dealer.

And yes—if it’s a high-demand vehicle with long wait times and limited supply, like a Toyota hybrid or a Kia Carnival, it can be difficult to negotiate these fees away. But what this really highlights is that the industry needs stronger consumer protection.

What You Can Do About It

One of the things our organization—the Automobile Consumer Coalition, a nonprofit consumer advocacy group I work with—is pushing for is stronger rules that prohibit dealerships from tied selling. Dealers should not be allowed to force you to pay for add-ons you don’t want.

If you support this, here’s how you can help:

Write to your regulatory authority and government representatives.

Tell them you support prohibiting tied selling and price gouging.

If you live in the United States, write to the Federal Trade Commission (FTC) and report dealerships using questionable tactics.

If you live in Canada, it depends on your province. Contact your provincial regulator or ministry. For example:

British Columbia: VSA

Alberta: AMVIC

Ontario: OMVIC

Write to them and tell them you want an end to dealership price gouging and tied selling, and that you support stronger consumer protection.

If we want a stronger, more ethical, and more professional auto industry, it’s going to take support from all of us.

Need Help With a Deal?

If you need car-buying advice, feedback on a deal, or negotiation help, you can sign up for our service at Car Help Canada. And if you live in Ontario, we can even negotiate the deal for you and recommend a dealership you can buy from.

If you found this video helpful, make sure to like and subscribe.

And if you live in Ontario, remember that OMVIC is the vehicle sales regulator responsible for administering and enforcing the rules dealerships must follow. Make sure to write to them if you want stronger consumer protection.

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