You’ve done it. You’ve spent hours researching, test-driving, and negotiating the price of your new car. You’re excited, and you’re ready to sign the papers. But when the final invoice arrives, your heart sinks a little. The total amount is significantly higher than the price you agreed upon, thanks to a list of confusing extra charges.
Welcome to the world of “junk fees.”
These aren’t illegal charges. They are high-priced, low-value add-ons that car dealers are experts at bundling into your deal. They are “secretly” added in the sense that their high markup and questionable necessity are never clearly explained, often being presented as standard or mandatory.
Before you sign any loan agreement, you need to know how to spot, question, and refuse these three common junk fees that can cost you a fortune.
Before You Begin: Demand an Itemized Invoice
Your first line of defense is simple: Always ask for a detailed, itemized breakdown of all charges. Don’t accept a single final number. You need to see every single line item before you can begin to question them.
The 3 Junk Fees to Watch Out For
1. Inflated “Registration & Documentation” Fees
Every car needs to be registered with the BRTA (Bangladesh Road Transport Authority), and this involves a government fee. Dealers will handle this process for you, but they add their own fee for the service, which is where the junk fee hides.
- What It Is: A single line item like “Registration & Service Charge” that bundles the actual government fee with the dealer’s own, often massive, service fee.
- The “Secret”: The dealer presents this as one mandatory, official charge, making you think the entire amount is a government tax. In reality, the actual government fee might be 50,000 BDT, but the dealer has added a 25,000 BDT “service fee” on top for simply handling the paperwork. This is pure profit for them.
- How to Fight It: Ask for a precise breakdown: “What is the exact government fee for the BRTA, and what is your specific service charge for handling it?” Do your own research on the BRTA website to know the real cost beforehand. You can then negotiate their service fee down or, if you’re willing, handle the registration yourself to save money.
2. Mandatory “Accessory Packages”
You’ve negotiated the price of the car itself, but the model on the floor comes with a “special package” of accessories already installed. This is rarely a good deal for you.
- What It Is: A non-negotiable bundle of items like low-quality seat covers, floor mats, mud flaps, or a basic car security system.
- The “Secret”: These accessories are marked up to an astonishing degree, sometimes 200-300% more than what you would pay for higher-quality versions at an aftermarket shop. This package is a massive profit center for the dealership. They rely on you being too tired to argue about it at the final stage.
- How to Fight It: Be firm. Say, “I am happy with the price of the car, but I do not want to purchase the accessory package.” If they claim the items are already installed and cannot be removed, you have two options: demand they reduce the price of the package to its actual market value, or be prepared to walk away. This shows them you are a serious buyer who won’t be pushed around.
3. High-Pressure “Extended Warranty” Plans
As you’re about to sign, the finance manager will present you with a “fantastic offer” to extend your car’s warranty for several years beyond what the manufacturer provides.
- What It Is: An insurance policy that covers potential repairs after the car’s standard factory warranty expires.
- The “Secret”: These extended warranties are extremely high-profit items for dealers. They are often pushed hardest on reliable, brand-new cars that are least likely to need major repairs during the extended period. The fine print is often full of exclusions, meaning the problem you have might not even be covered.
- How to Fight It: First, know the manufacturer’s warranty that comes FREE with your new car (usually 3-5 years). When offered the extended warranty, your default answer should be, “No, thank you.” You are under no obligation to decide right then. You can almost always purchase an extended warranty later, before the factory warranty expires, giving you time to research if you actually need it. Never let it be rolled into your car loan without careful consideration.
Your Ultimate Weapon: Preparation
The best way to defeat junk fees is to walk into the dealership prepared. The most powerful tool you can have is pre-approved financing from an outside bank. When the dealer knows they are not controlling your loan, they have less leverage to push these extra charges on you. You are in control.
Conclusion
Your dream car shouldn’t come with a nightmare of hidden costs. By questioning inflated registration fees, refusing overpriced accessory packages, and saying no to high-pressure extended warranties, you can save a significant amount of money. Always remember to read every line of your agreement. A few minutes of diligence can protect your wallet for years to come.