Is Freight and PDI Negotiable in Canada?

Freight is the cost to ship the car from the factory to the dealer. The carmaker sets this fee. It is the same at every dealer for that model.

PDI means pre-delivery inspection. The dealer takes off the shipping wrap and checks the paint, the inside and the engine. Then they top up the fluids and get the car ready for you to drive.

Some brands list freight and PDI as one line. Others split them into two lines on the window sticker.

Either way you pay both before you drive away. Ask the dealer which one you are looking at.

Freight and PDI depend on the brand and the model. AutoTrader.ca lists $1,750 on a Mitsubishi Mirage in Ontario. It lists $2,850 on a Porsche 911.

That is real money on any car. HST is charged on top of it too. On a $2,000 fee in Ontario that adds $260 more.

Ask the dealer for the exact number in writing. Check the window sticker too.

The number on the sticker should match the number on your bill of sale. If the two do not match, ask the dealer to explain the gap before you sign.

No. Both fees stay on the bill on a new car. Freight shows up on the bill the dealer gets from the carmaker.

You can see how that bill works on our dealer invoice price page. PDI is the cost to prep the car and every new car needs it.

The one exception is a demo or loaner car. Staff or service customers drove it before you. Dealers will take both fees off these cars.

A fight over the fee line wastes your time. Push the total price down instead.

Yes. Ontario has all-in pricing rules set by OMVIC. An ad price must include every fee the dealer plans to charge.

That means freight and PDI belong in the ad price. Admin fees and pre-installed add-ons do too. HST and licensing are the two things a dealer can leave out.

Did a dealer add freight and PDI on top of an ad price? Ask why. You can report it to OMVIC.

Rules are different in other provinces. Outside Ontario you should ask for every fee in writing before you agree to a price. Then compare that total with the ads you saw.

OMVIC calls this all-in price advertising. It applies to new and used cars.

1. 1Step 1: Ask for the full price before tax. It should list every fee on its own line.
2. 2Step 2: Get the same quote from 3 dealers. Freight is the same at each one, so the gap between quotes is dealer profit.
3. 3Step 3: Push the total down. Do not argue over one line.
4. 4Step 4: Get the final price in writing. Do this before you visit the store.
5. 5Step 5: Check the bill of sale at pickup. Every fee should match your written quote.
6. 6Step 6: Ask the dealer to remove any add-ons you did not ask for.
7. 7Step 7: Walk away if a new fee shows up at the last minute. Another dealer will sell you the same car.