Beware hidden fees by used car dealerships in Singapore

Browse used cars from dealerships and chances are, the sticker price isn’t the final cost you pay. Hidden fees exist and is an industry practice as bewildering and scammy as it sounds. What exactly is it?

Introducing, “Documentation” or “Administration fees”. Dealerships typically list this line item at $500 and won’t inform you of it just before you sign on the dotted line just as costs are laid down.

Consider this a Public Service Announcement though your mileage may vary. I dealt with a salesman who didn’t charge documentation fees and one who did.

What exactly does documentation entail that half a thousand is charged to the customer? Your guess is as good as mine. Nonetheless, should you think you are getting a good buy even with a $500 charge tacked on, more power to you!

If it makes you sleep better, know that salesmen are just like us and need to eat, pay rent and make a living too. Selling cars isn’t easy, more so when it’s used.

The best advice is: Always remember to use your judgement and if a deal makes you uneasy, walk away.

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