Consumer Reports Did The Math On Common Dealer Add-Ons, And The Total Is Painful

Sure, some dealers think new cars cost too much, but others are actually part of the problem. Earlier this year, the feds had to warn another 97 car dealerships to knock it off with the hidden fees already. It turns out that, according to Consumer Reports (CR), unnecessary dealer fees and add-ons can easily add thousands of dollars to how much you have to pay for a car. Plus, that's before you factor in finance/interest charges if you have to pay for those so-called "upgrades" over time.

For example, one of the most commonly suggested extra purchases — and most expensive — is an extended warranty. Often carrying multiple four-figure price tags of their own, extended warranties can perhaps be worth it in the long run in some very specific situations, such as buying a pre-owned Range Rover from a brand with some of the highest maintenance/repair costs in the industry. That said, CR advises shoppers to start by buying a more reliable vehicle in the first place and then setting money aside for potential repairs instead. If you're on the hunt for a new car, you could look at the brands with the longest warranties in America, too.

Another costly come-on from dealers is trying to sell you rustproofing your car doesn't need — at $800 a pop, CR found. The short story here is that, generally speaking, rustproofing isn't worth it for modern new cars because they come well protected against corrosion from the factory. The same holds true for various interior protection plans to protect the upholstery. If you really want extra protection against stains in the cabin, you can get spray-on solutions from Amazon for $12.

Consumer Reports also warns against dealers charging for unneeded products and services that range from $200 – $300 for VIN etching to $400 for filling your tires with nitrogen. And that's even though cars have their VINs already marked on their vehicles from the factory, and the regular air filling your tires is already mostly nitrogen.

But a separate and significant warning is reserved for dealers who charge exorbitant fees for basic paperwork and/or blatant rip-offs. A classic example of the latter is the advertising fee, where dealerships try to charge you money to recoup the cost of their advertising. According to Consumer Reports, this is something already accounted for by the vehicle's MSRP. Nor should you pay extra to have the car inspected or cleaned up prior to delivery. Once again, you're already paying for those services, this time in the form of the destination charges.

There are some valid extras that you do have to pay for, of course -– just make sure you're not paying too much. For instance, if you're not handling things yourself, it makes sense for the dealer to charge you something for titling and registration. Additionally, a case can be made that dealerships deserve a fee for handling the paperwork. Exactly how much that will set you back is usually a matter of negotiation. 

The final pain point is one you may not be able to avoid at all. When demand for a brand-new vehicle is high enough, dealers will add "market adjustments," or markups, specifically to wring more cash out of customers. But even without that, the unnecessary car dealership extras can easily add over $4,000 or more to your car purchase price.