Is it reasonable to charge GPS fees for installment car purchases?

[VonCharlotte]

It is unreasonable to charge GPS fees for installment car purchases. Below is the relevant introduction about GPS fees for installment car purchases: 1. Installing GPS for installment car purchases is reasonable, but charging GPS fees is not. This is a loophole that 4S shops use to 'extract' more profits. Moreover, there is no exact standard for the so-called 'GPS fee'—it can be 2000 or 3000, entirely at the discretion of the dealer. This price is negotiable. If you think it's reasonable, go ahead with the purchase. If negotiation fails, consider switching to another store. 2. Whether the GPS fee for installment car purchases can be waived depends on the negotiation between the two parties. This fee is the direct profit of the dealer. If the GPS fee is too high, you can directly call 12315 to file a complaint. If you encounter a shady store, leave immediately—switching to another store is not a big deal.

[StIsla]

Regarding the GPS fee charged in installments, I think it depends on the specific situation. When I bought my car, I encountered this fee, which was justified as a mandatory installation for loaned cars to prevent default. However, it added up to over 2,000 yuan, and the key issue was that after installation, no one even told me how to use it—it was just money wasted. Later, I found out that legitimate banks don’t require this at all; only financial companies enforce such charges. My advice is to carefully review the contract terms before signing. If the other party insists on charging it, just switch to another financing institution. After all, there are plenty of installment plans nowadays that waive GPS fees, so there’s no need to be taken for a fool.

[SarahDella]

From a legal perspective, GPS fees exist in a gray area. Contract law stipulates that both parties should enter agreements voluntarily and equally, yet many 4S dealerships directly bundle this cost into installment packages without providing any choice. A friend of mine fell victim to this - when attempting to remove the GPS after completing payments, they were charged an additional ¥500 removal fee. In reality, financial institutions use this to transfer risks, while consumers are forced to foot the bill. Unless the contract explicitly lists the device price and service details, this charge is fundamentally unjust. The best approach is to declare upfront during price negotiations that GPS fees are excluded, forcing salespeople to deduct this cost from the total price.

[McOmar]

The car salesperson discussed this with me, they refer to the GPS fee as risk control cost. Especially for used car installment loans, installing a tracker can indeed prevent loan fraud. But the issue lies in the excessive markup of the charges. A standard GPS terminal costs around 300 yuan to procure, plus 100 yuan for a mobile SIM card, yet they dare to charge customers three to four thousand. What's even more deceptive is the repeated charges during loan renewals. My suggestion is to clarify these points before taking out a loan: Is the fee included in the interest? Will the car be remotely locked in case of overdue payment? Can you choose the device brand yourself? After all, it's your own money, and you should know where it's going.

[EmilyRose]

Just helped my cousin buy a car and ran into a GPS fee dispute. The finance company's contract stated a mandatory payment of 1,980 yuan, but I found the same GPS selling for only 399 on Taobao. Confronted the salesperson directly with a screenshot, and they immediately backtracked, offering to cut the fee by half. The trick with installment car purchases lies in negotiable fees—GPS charges, service fees, none of these are set in stone. When bargaining, don't just focus on the monthly payments; lay out all additional costs for calculation. If unavoidable, at least negotiate for value-added services: like real-time vehicle location tracking via an app, automatic alerts for anomalies, etc., to ensure the money is well spent.