Is GPS Fee Mandatory for Car Installment Purchases?
3 Answers
No, consumers have the right to choose. Whether to install GPS should be agreed upon through negotiation between both parties. If forced installation is required, it constitutes an illegal practice of compulsory tied sales. According to Article 12 of the Anti-Unfair Competition Law: Business operators selling goods must not tie the sale of goods or impose other unreasonable conditions against the buyer's will. Below is relevant information about GPS fees for installment car purchases: 1. Regarding reasonableness: Installing GPS for installment car purchases is reasonable, but charging GPS fees is not. This is a side door for 4S shops to 'extract' more profits, and the so-called 'GPS fee' has no exact standard—it could be 2000 or 3000, entirely at the dealer's discretion. This price is negotiable; buy if you find it reasonable, or try another shop if negotiation fails; 2. Regarding whether to pay the fee: Whether the GPS fee for installment car purchases can be waived depends on negotiation between both parties. This fee is direct profit for the dealer. If the GPS fee is excessively high, consider calling 12315 to file a complaint. If encountering a shady shop, simply leave and try another—it's no big deal.
Last time I bought a car on installment, the loan company said I had to pay a GPS fee, otherwise the loan wouldn't be approved. They explained that this fee was for installing a tracker, so in case I defaulted on payments, the car got stolen, or I couldn't afford to pay, they could locate and repossess the vehicle. I felt it was a bit unfair but had to pay because the car was collateral—not paying meant the loan would fall through. Later, when my friend bought a car, they negotiated with the salesperson and switched to a lender that didn’t require GPS, saving a few hundred bucks. So, while this fee isn’t legally mandatory, most financial institutions require it to mitigate risk. It’s best to clarify the contract details first, choose a plan with lower fees, and don’t rush into signing anything to avoid complications.
When my family of four bought a car on installment, was the GPS fee mandatory? The salesperson insisted it was required, otherwise the loan company wouldn't approve. This fee is for anti-theft security—they use GPS tracking to ensure the car remains in your possession, preventing repossession or default issues. Personally, I think it's beneficial as an extra layer of protection, especially when traveling with kids. However, the cost can be negotiated. Some companies sneak it into the total price, so compare lenders and choose reputable ones to avoid future disputes affecting your credit. Overall, it’s advisable to pay it honestly, as the consequences of defaulting are far worse.
