Understanding Dealership Fees: What to Know Before You Buy
- Revival Powersports Team
- May 23
- 9 min read
Whether you’re shopping for a motorcycle, a car, or a toy for the weekends, one thing’s certain: dealership fees can turn a good deal into a confusing mess. Some dealers lay everything out in black and white. Others rely on fine print or vague language to slide extra costs into the deal. In the worst cases, fees are left out of the conversation altogether, which isn’t just shady - it can be illegal.
As a buyer, you’ve got more control than you think. The dealership might hold the keys, but you're the one with the money. If something doesn’t sit right, ask. If it still doesn’t make sense, walk.
Jump Ahead to Sections:
The Truth About MSRP
First, let's get one thing straight - your local dealership does not set the MSRP. That number comes directly from the manufacturer. It's printed on the tag, listed on the website, and designed to keep pricing consistent between dealerships. That way, someone shopping in Edmonton sees the same baseline price as someone browsing in Kelowna.
That’s the idea, anyway.
The reality, however, is that MSRP barely scratches the surface of what you’ll actually pay.
It doesn’t include freight charges. It doesn’t cover pre-delivery inspection. It won't include setup, registration, documentation, or taxes. It’s kind of like seeing a couch on sale, then finding out that the cushions are sold separately, delivery costs more than the frame, and you're already halfway up the staircase yelling “Pivot!” while trying to fit it into your budget.
And this is where things get frustrating. A lot of dealers still advertise bikes using solely the MSRP. Why? Because it looks good. It’s a cleaner, lower number. It shows up better in search results. But let’s be real - if the goal is transparency, this misses the mark completely.
The problem isn’t just that MSRP leaves things out. It’s that some dealers use it strategically to hook you. The ad says one thing. The invoice says another. And now you’re stuck backtracking, trying to figure out how a $13,999 bike became $18,500 before you even signed anything.
So when you’re shopping, don’t lock your expectations to MSRP. Ask for the total price. What’s included? What’s not? Can you remove anything to cut back? What’s the actual ride-it-home number?
Because at the end of the day, no one celebrates getting a great deal on just the idea of a motorcycle; we all want a fair deal.
"In our industry - MSRP is gospel when a customer is trying to buy a used ride well below it. When trading in, however, MSRP goes out the door and the focus turns to the comps that same person found on Facebook Marketplace." Trevor Chekowski, Revival Powersports Co-founder
Breakdown & Glossary of Common Fees
Here’s a look at the typical charges you might run into when buying a motorcycle - or anything with a key and paperwork, for that matter. Some are perfectly reasonable. Others? Let’s just say you’ll want to ask some questions. We've included our scale of fairness as a generalized guide as follows: Usually Fair - These are fees you can usually expect to pay.
Can Be Fair - These are fees you can expect to pay; but not always.
Usually BS - These are fees you should question.
Note that these grades serve solely as a guide and shouldn't be taken as gospel. Always look for double-charging and other common dealer scams.
Paperwork Related Fees
Doc Fee (Documentation Fee) (Usually Fair)
Covers the admin side of the deal - contracts, registration, licensing, paperwork storage, and all the other stuff nobody gets excited about but still has to be done. It shows up on almost every deal.
Admin Fee (Usually Fair)
Just a rebrand of the doc fee. If both appear, that’s a problem. You shouldn’t be paying twice for the same pile of paper.
Lender Fees (Usually Fair)
If you’re financing, your lender will usually include their own administrative costs. These usually get baked into your APR and aren’t set by the dealer.
Regulatory Fees (Usually Fair)
Some provinces charge fees on every new or used vehicle sold (think OMVIC or AMVIC). These fees should be easily searchable to ensure the charge matches the regulated amount.
PPSA Fee (Usually Fair)
A small Canadian government fee used to register a loan or lease under the Personal Property Security Act. Lenders typically just pass it along; though not always.
Fees Charged on New Units
Freight or Destination Fee (Can Be Fair)
This is what it costs to get your ride from the manufacturer to the dealership. The manufacturer sets the amount, not the dealer. It’s a legit charge - though it is strange that this is one of the few industries where the end customer pays to have the product shipped to the store.
Pre-Delivery Inspection (PDI) Fee (Can Be Fair)
This covers everything that gets your unit from “just arrived” to “ready to ride". Assembly, inspections, safety checks, fluids, and crate removal. Usually required by the manufacturer; though it may be inflated at the dealership to earn some extra cash.
Setup Fee (Can Be Fair)
If you’re already paying for PDI, this shouldn’t be here. It’s the same work. If both are listed, speak up. Nobody should be paying for the same job twice unless you’re tipping your mechanic out of kindness.
Tire Tax or Environmental Fees (Usually Fair)
These are charged at the provincial level to fund recycling and disposal programs. They’re non-negotiable, but they’re also not something your dealer profits from.
Market Adjustment Fee (Usually BS)
This one shows up when a unit is ordered but hasn’t arrived yet. If prices rise before delivery, the dealer may tack on a fee to cover the gap. It’s legal, but it should never be a surprise. Always ask early.
Fees Charged on Pre-Owned Units
Demo or Showroom Prep Fee (Can Be Fair)
Sometimes used to charge for detailing a display unit before delivery. Should be included in PDI. If they’re charging you to wipe it down after you just paid five figures, it better come with champagne.
Safety or Mechanical Inspection Fees (Usually BS)
Commonly seen on used units, especially if they’ve had a fresh safety check. We think this is a redundant charge as every unit a dealership sells should always be inspected regardless.
Other Fees You May Encounter
Warranties, Etching, and Protection Plans (Can Be Fair)
Add-ons like extended warranties, paint protection, or anti-theft etching should always be optional. In Canada, a dealer cannot legally make these a condition for financing or getting a lower rate. If they say otherwise, something’s off. These charges should always be expected at the time of signing as they should be something you had talked about prior.
Fuel or Battery Charge (Usually BS)
Some dealers charge a small fee to top up fuel or charge the battery before delivery. In our opinion, this is a petty charge and should always be questioned. If your dealer is nickel-and-diming you on this, you're likely also getting soaked elsewhere.
Credit Card Convenience Fee (Usually Fair)
Some dealers pass on processing costs if you pay your deposit or final balance by credit card. It’s allowed in Canada if they tell you in advance and is a fair charge as credit card processors typically charge around 3% which can add up. If they are charging more than 3%, however, you should definitely be asking some questions.
Other fees may show up depending on your region, payment method, or the dealership itself. If it’s not clearly explained, ask. If it feels redundant, challenge it. Not all fees are inherently bad, as they may improve the service provided. That being said - all of them should be easy to understand.
Why Do These Fees Even Exist?
Short answer? Marketing.
Manufacturers want the price on the tag to look low. The lower it looks, the more clicks it gets. Dealers follow suit. So instead of showing the full price, they advertise the base number and add the rest later as fees.
It’s not just a dealership move. Hotels hit you with resort fees. Airlines charge for bags and seats. Even restaurants in tourist hotspots now add “convenience” and “service” fees just for sitting down. People are wired to chase the lowest number - even when it’s not the real number. Businesses adapt to that.
In the dealership world, this means pricing the unit competitively to get your attention, then stacking fees on the back end to stay profitable. And like it or not, it works - especially when shoppers are filtering by price alone.
Digging Deep on Doc Fees
Of all the charges on a bill of sale, the documentation fee gets the most side-eyes - and for good reason.
This fee is typically explained as covering the cost of contracts, registration, title transfers, licensing paperwork, storage, and anything else that needs to be handled behind the scenes once the deal is made. If you’re financing, the workload increases - there’s a whole set of approvals, disclosures, lender forms, and coordination that can take hours to complete. So yes, in many cases, a doc fee makes sense.
But here’s where it gets weird. Some dealers charge the exact same doc fee even if you’re paying cash. No financing, no lender paperwork - just a basic bill of sale. And yet, the same high fee still shows up. At that point, it starts to feel like a margin booster more than anything tied to actual admin work.
To be fair, this fee didn’t just come out of nowhere. It exists because of how buyers shop. When a dealer lists a bike at $14,999, buyers compare it to every other $14,999 listing - whether that dealer includes fees or not. So instead of being honest and losing visibility in search results, some dealers keep the price low and recover their margin in doc and admin fees.
Is it shady? Not always. Is it frustrating? Absolutely. Especially when it’s not clear what you’re paying for or why it’s showing up on a cash deal.
The key here is transparency. A reasonable doc fee that covers real work and is clearly explained? Fair enough. A price that shows the sticker with the fees included? Even better. But if it feels random, bloated, or unexplained, you’ve got every right to push back.
How to Handle Fees Like a Pro
So you’ve found the right ride. Now it’s time to make sure the numbers add up. Here’s how to take control of the deal without needing a law degree or a lie detector.
Step 1: Ask for the full breakdown
Before you even think about putting down a deposit, get a written offer that includes everything—unit price, taxes, doc fees, PDI, freight, tire tax, the whole works. If a dealer won’t give it to you? That’s your sign to walk.
Step 2: Negotiate where it counts
Some fees are fixed. But you can still negotiate the total number. If they won’t move on the price, ask for value: delivery, a gas card, a free upgrade, or a warranty add-on. Dealers have options—they just don’t always offer them up first.
Step 3: Walk away if the vibes are off
If the numbers keep changing, or if fees magically appear after the deal is “locked in,” that’s not negotiation—that’s a bait-and-switch. There are too many good dealers out there to waste time with ones that play games.
Fee Scams to Watch Out For
Not every fee is a scam. Some cover real work. Others? They’re a little more... creative. Here are the biggest red flags to look for:
Floating doc fees
You talk them into a better price, and they quietly raise the doc fee to make up for it. Always ask for the fee amount before you start negotiating.
Credit-based upcharges
Some dealers charge higher fees if your credit isn’t perfect. That doesn’t make sense. Their workload doesn’t change based on your score.
Double billing
Watch for both a doc fee and an admin fee. They’re the same thing. You shouldn’t be paying both.
Lowball trade tricks
Some dealers will quote a strong trade-in value, then tack on fees to reduce what they actually give you. Get the real, all-in number before you sign anything.
The Revival Powersports Difference
Fees don’t have to be shady. At Revival Powersports, we’ve built our process around fairness, clarity, and zero surprises. That means no gotchas, no last-minute add-ons, and no mysterious charges appearing just before you sign. Here’s what sets us apart:
Our sale price already includes our documentation fee. The number you see is the number you can plan for. No games, no padding.
$499 doc fee - flat and fair for everyone. Whether your credit is perfect or a work in progress, the fee is the same because the paperwork is the same. No upcharges, no “risk-based” excuses.
Coverage plans are offered after you see the full price. You get the actual bottom-line cost first. Then you can decide if extras like warranties or protection plans make sense for you. No pressure.
We don’t negotiate - and that’s a good thing. Everyone gets the same deal. Whether you’re bold and brash or quiet and cautious, we treat everyone equally. No haggling required. No FOMO.
Our financing calculator includes every fee. When you check your payments with us, you’re seeing the real math. That includes estimated lender fees—so there’s nothing hiding in the shadows.
Cash deals? It’s just price plus GST. If you’re paying cash, we won’t charge you a doc fee or add-on fluff. No markup for the paperwork. Just straight-up pricing.
That’s how we do business. We believe in earning trust by being upfront from the start—and that’s what keeps our customers coming back.
Final Thoughts
Most of these fees aren’t going anywhere. They’re part of how the industry operates—but that doesn’t mean you have to accept them blindly.
The more you understand the charges, the better positioned you are to spot what’s fair, what’s fluff, and what’s flat-out questionable. Ask for the full breakdown. Get it in writing. And if the answers feel murky or the numbers don’t add up, trust your gut and move on.
Smart buyers don’t just chase the lowest price - they chase the clearest deal. And that’s where the real value lives.
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