How to Avoid Hidden Fees When Buying a New Car in 2025

Buying a new car is exciting — that fresh paint smell, the pristine interior, the latest technology. But here’s the catch: if you’re not careful, the price you see on the windscreen can end up being very different from the amount on your final invoice.

In 2025, Australian dealerships are still experts at adding “extras” and “mandatory fees” to new car purchases. These charges can easily push your costs thousands of dollars above your budget. The good news? Most of them can be avoided, reduced, or negotiated — if you know what to look for.

This in-depth guide will help you understand common hidden fees, how to spot them early, and the best strategies to avoid paying more than you should.

Why Hidden Fees Are Still a Problem in 2025

Despite tighter consumer laws and increased transparency, many dealerships have simply found new ways to package charges.

The Australian Competition and Consumer Commission (ACCC) has cracked down on misleading advertising, but dealers still add “dealer delivery fees,” “on-road costs,” and “accessory bundles” that aren’t part of the manufacturer’s RRP.

The reason is simple: while car manufacturers have slim profit margins, dealerships rely heavily on add-ons and upsells to make their money.

The Most Common Hidden Fees in Australia

Here’s a breakdown of what you might see when you sit down to finalise your deal in 2025.

2.1 Dealer Delivery Fee

• What it is: Supposedly covers the cost of preparing your car for handover — washing, removing plastic covers, minor checks.
• Typical cost: $1,500 – $4,000 (yes, for a car that’s already built and shipped).
• Reality: Often pure profit for the dealer. Many buyers have negotiated this down or had it waived.

2.2 On-Road Costs (“ORC”)

• What it is: Registration, stamp duty, number plates, and compulsory third-party (CTP) insurance.
• Typical cost: $2,000 – $6,000, depending on the car’s value and your state.
• Reality: Some dealers inflate these beyond actual government charges. You can request an itemised breakdown to check.

2.3 Administration Fees

• What it is: Paperwork and processing charges.
• Typical cost: $200 – $600.
• Reality: Often unjustified — processing your sale is part of doing business.

2.4 Extended Warranties

• What it is: Extra years of warranty sold on top of the manufacturer’s coverage.
• Typical cost: $1,000 – $3,000.
• Reality: Many overlap with Australian Consumer Law protections. Not always worth it unless you plan to keep the car for a decade.

2.5 Paint & Fabric Protection

• What it is: A sealant applied to your paint or upholstery.
• Typical cost: $800 – $2,000.
• Reality: You can get equal or better treatment from a professional detailer for a fraction of the cost.

2.6 Window Tinting

• What it is: Darkened glass for style and heat reduction.
• Typical cost: $500 – $1,200 through the dealer.
• Reality: An aftermarket tint shop can do it for $250 – $500 with better quality.

2.7 Rustproofing & Underbody Coating

• What it is: Protective spray to prevent rust.
• Typical cost: $500 – $1,500.
• Reality: Most modern cars are already rustproofed at the factory.

2.8 Dealer-Fitted Accessories

• What it is: Roof racks, floor mats, dash cams, tow bars, etc.
• Typical cost: Varies — usually 20–50% higher than aftermarket.
• Reality: Often pre-installed to make them seem “mandatory.” Ask for removal or shop elsewhere.

How Hidden Fees Add Up

Let’s look at an example:

• Base price of car: $45,000
• Dealer delivery: $2,500
• On-road costs: $4,000
• Paint protection: $1,200
• Extended warranty: $2,000
• Tinting: $800

Total “surprise” extras: $10,500

Final drive-away price: $55,500 — that’s over 23% more than the sticker price.

How to Spot Hidden Fees Before You Commit

4.1 Always Ask for an Itemised Quote

Don’t settle for “drive-away” pricing without detail. You want each cost listed separately so you can question anything unnecessary.

4.2 Compare Multiple Dealers

Different dealerships have different fee structures — even for the exact same model.

4.3 Research Actual Government Charges

Check your state’s road authority for registration and stamp duty costs so you can call out inflated figures.

4.4 Be Wary of Pre-Installed Accessories

If the dealer says they “come with the car,” ask if they’re included in the advertised price. If not, request removal.

Negotiation Strategies to Avoid Hidden Fees

Avoiding hidden costs is all about confidence and preparation.

5.1 Know the RRP and Current Market Price

Use manufacturer websites, RedBook, and classifieds like Carsales to understand the fair price.

5.2 Say No to Add-Ons You Don’t Need

Paint protection, extended warranties, and overpriced accessories are all optional.

5.3 Be Ready to Walk Away

If the deal changes at the last minute, you have the power to leave — and dealers know it.

5.4 Bundle Negotiations

If you do want accessories, negotiate them into the total deal at a discount rather than paying the full listed price.

5.5 Get Multiple Written Offers

Having competing offers in writing gives you leverage.

2025-Specific Trends to Watch

• Digital Contracts: More sales are being finalised online — check for “service fees” in digital invoices.
• Mandatory Software Subscriptions: Some brands now charge annual fees for connected services (navigation, apps). Ask before you buy.
• EV Charging Packs: Electric vehicles may come with optional home chargers at inflated dealer prices.

Protecting Yourself Legally

• Australian Consumer Law: Guarantees your rights, regardless of dealer warranties.
• Cooling-Off Periods: Some states offer a short window to cancel (usually for used cars, but check local laws).
• ACCC Complaints: If you believe fees were hidden or misrepresented, lodge a complaint.

The Final Checklist Before Signing

1. Request a full, itemised invoice.
2. Verify government-related charges independently.
3. Decline any add-ons you didn’t request.
4. Negotiate dealer delivery fees.
5. Confirm all inclusions in writing.

Key Takeaways

• Hidden fees can add 10–25% to your purchase price.
• Most extras are optional and negotiable.
• Being informed, asking questions, and comparing quotes are your best tools.
• Don’t rush — the right deal will still be there tomorrow.

Final Word

Buying a new car in 2025 should be exciting, not financially stressful. By understanding dealership tactics, knowing your rights, and approaching the sale with confidence, you can drive away knowing you paid a fair price — without unnecessary extras.

If you want more in-depth guides like this, explore our other Car Buying Tips on Carscoop for strategies to make your next purchase smoother and cheaper.