Dealer fees

Hello, I really need an advice, I don’t have anyone that can help me
I’m trying to purchase a brand new car, (Corolla XLE) I know is a bad time to do it but I really need a vehicle (Of course I didn’t told the dealer) anyway they told me I “have” to pay for these things:
Security package. $2,999
Protection package. $2,999
Car doc 5ys W/brakes. $1590
Market value. $7,999

I know that I have to pay for tax, docs, etc but what about those fees?
Supposedly I’m getting a interest of 2.99% APR and they were asking for 10,000 down but the guy “worked things out” and now is only $4,000 plus all those fees and of course the price of the car, they said that if I don’t agree then the interest will be higher because is required, so is it true?
Of course I haven’t sign anything
Thank you

It would be really helpful if you could break down which each add on includes. Course the last new car I bought was 2017, and did not have a single add on. If that was 16 grand, rough estimate to buy a new car I would look at a used Hertz or whatever rental car.

I’d look for a car somewhere else. They’ve got to be selling them for MSRP without a bunch of fees somewhere.


Well Security package apparently protects the car from thief
Protection package is for paint and seats you know scratches, rips etc
Car doc W/brakes covers oil changes, tire rotations, brakes etc.

Nearly $16000 in mark ups on a car with an msrp in the low to mid 20’s. That’s pretty bad even in today’s market. Find another dealer.

My daughter works at my local Credit Union. They have a car buying service and their interest rates are very competitive. This might be an option worth looking into.

Good luck,

Ed B.


$15,600 in mark-ups? Is this a $250,000 vehicle?

I don’t think an explanation of the add-ons will make this sound legitimate.


So, what does limited market value means? Is it because of the chip shortage of something?

With a limited supply the dealers can add a “market value” fee to the price. What sort of a vehicle can command an $8,000 market value increase? Certainly not a Corolla, perhaps a Jaguar. There are many dealers that sell compact cars, try another dealer.


Thank you!! It was at a Toyota dealer, and I also went to another who offered me a used 2020 Camry, the total price with all the fees was $47,900, just about $1000 less than this new corolla, so crazy :roll_eyes:

You have our sympathy. This is just insane. None of those add ons has any real value. Terrible time to have to buy a car. Get the recent Consumer Reports car issue and put together a list of half a dozen models that would be acceptable (not necessarily ideal), and use sites like and to search for them. Good luck!


It’s not a new thing, but all of that stuff makes the dealer more money but is worth a fraction of what they’re charging.


Sales have been so low during the last two years, they are looking to squeeze as much out of each sale as possible, but there must be a limit. Sooner or later a rube will come along and pay whatever they are asking.

Manufactures have been focusing their parts supply on high end vehicles. Check with your Lexus dealer, an ES350 (Camry) starts at $43,000. An UX200 for $35,000 (Corolla hatch back).

I would buy a used Corolla and drive it for ten years, but some people want a new car every 3 years. A used corolla in my area is $15,000 to $18,000. When you take inflation into consideration, $15,000 isn’t what it used to be.


I don’t know what the market is like right now but for those prices I would consider other alternatives. Things may be better or worse in a couple years. You never know. I think back to 1981 when I needed a car. Best deal was 18% at the bank I had been a customer of since I was 15.

I visited two Lexus dealers, so far. The first one adds $5,000 “ADP” to every car. The second one mandates a bunch of options–which I don’t want–totaling $4,860. Then, online, I found a Lexus dealership about 60 miles away which states on their website that “we never charge above the MSRP for a vehicle”. Being a skeptical sort, I phoned them and was told the same thing. *

I don’t know about you, but I will gladly drive about 70 minutes to save $5,000. I suggest that you start surfing the sites of lots of other Toyota dealerships to see if they are charging “only” the MSRP.

*Of course, when I’m finally ready to place my order in a few months, this could have changed.


Very possible, sometimes the more money you finance the lower the interest rate.

What you need to figure out is which way is less expensive in the long run.
$48,000 @ 2.99% = TOTAL COST ?
$30,000 @ ?% = TOTAL COST ?

You might be better off with the higher APR

If you belong to a credit union find out just how much you can borrow , the interest rate and what you really can afford . Then look for a used vehicle ( I might try Carmax ) . You will pay too much but at least you will not have those worthless addons.

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It’s called “Price it for what you can get for it” and while this current situation won’t last forever and shopping it around may help lower the price, right now you’re pretty much over a barrel.

On the other hand, if you’re prepared to be flexible …

  1. Do you truely “need” or “just want” a new car right now?
  2. Do you have an existing car that will fit your needs until the present supply glitch is resolved?
  3. Does it have to be a Toyota Corolla or would a less popular vehicle be acceptable?
  4. Will a good used vehicle fill your needs?
  5. Is Alternative Transportation an option?

Bottom line, the current Chip Shortage is a short term problem but a new car and new car loan is a 5-10 year purchase. If things return to normal in a year or two, would you feel comfortable knowing that you paid top dollar for a vehicle that may be now worth less than half what you paid for it?

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Beancounter beat me to it . If new with warranty why does it have to be a Corolla ? If a person was to buy that Corolla with all those unnecessary addons it gives the term Upside Down a new meaning.

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$16k in add-ons on a (maybe) $30k MSRP car? I’d tell the dealer to stuff it, and keep looking. There are plenty of used cars on Craigslist–especially ones that are over 15 years old–being sold at or below their book value. No need to pay B.S. “market adjustment” fees and other worthless add-ons because new cars are scarce right now.


My 2 cents. this is a game that some dealers are playing now to get every dime out of you. DON’T play it. do your research and call around asking dealers if they sell at MSRP with no markups. even if it means going to a dealer other than TOYOTA.