How to Read a Dealer Quote, Line by Line

A dealer quote can look like a wall of numbers. Most of it is standard, a few lines are worth a question, and one number matters more than all the rest. Here is how to read it top to bottom.

1. The vehicle price

MSRP / vehicle price. The manufacturer's suggested price for the exact trim. On popular models dealers often sell at MSRP. On slower sellers or outgoing model years, there is often room below it.

Options and packages. Factory extras such as a technology or winter package. These are priced by the manufacturer.

Market adjustment. An extra markup some dealers add on high-demand vehicles. It is pure dealer profit and entirely negotiable.

2. Manufacturer and government charges

Freight and PDI. Shipping the car to the dealer plus the pre-delivery inspection. It is set by the manufacturer, is on almost every new car in Canada, and is often around $2,000 or more. Expect to pay it.

A/C and tire levies. Small environmental charges set by the province and federal government. Not negotiable.

Federal luxury tax. Only applies to vehicles priced over $100,000.

3. Dealer fees

Documentation or admin fee. A dealer charge for paperwork. It ranges from a few hundred dollars to over $1,000 depending on the store, so it is one of the best lines to compare between dealers. See Which dealer fees are negotiable?

Add-ons. Rustproofing, paint and fabric protection, nitrogen in the tires, anti-theft etching, and similar. These are optional. See Dealer add-ons explained.

4. Incentives and credits

Incentives or rebates. Money off from the manufacturer or government. Check that they appear on the quote and are taken off before tax where they should be.

Trade-in. What the dealer is giving you for your current car. In B.C., a trade-in also reduces the amount you pay tax on.

5. Taxes

In B.C., that's 5% GST plus PST, which is 7% on most vehicles and rises on more expensive ones. Taxes are calculated on the price plus fees, so a higher fee also means more tax.

6. Financing or lease lines

Down payment. What you pay up front.

PPSA / registration. A small fee to register the lender's claim on the car. Standard when financing or leasing.

Amount financed. What you are actually borrowing.

Interest rate and term. The yearly cost of borrowing and how many months you pay. See What is a good car loan interest rate?

Lease-only lines. Capitalized cost, residual, and due at signing. See Leasing vs. financing.

The bottom line

Read the quote in the order above, circle the dealer fees and add-ons, and compare the out-the-door total. If you have more than one quote, our guide to comparing dealer quotes walks through it.