"Admin Fee" when buying a car

"Admin Fee" when buying a car

Author
Discussion

Jimjimhim

64 posts

1 month

Tuesday 7th May
quotequote all
Cotty said:
The problem is our definition of clearly signed and the garages definition of clearly signed differ greatly.
If its "£15,000 + admin fee" fine. if its £15,000 then three pages down hidden in the terms and conditions then no.
Someone mentioned car giant, so I just had a look on their website and it is clear that there is an admin fee. Some others might not be so clear I guess.

Mojooo

12,775 posts

181 months

Tuesday 7th May
quotequote all
The question to ask is why do they do it.

You then have you answer as to whether they should.

TimmyMallett

2,877 posts

113 months

Tuesday 7th May
quotequote all
Carshop is the same. I've refused to pay in the past but they won't budge, and given I'm more interested in getting the right car at the right price I'm not going to lose out if the car and price is right. You can walk over principles but you need to get past it and work out if it's really worth an extra £100 of your time if you've found something you want, rather than carry on searching.


As for the rest of the 'value add' cr@p where they want to charge you to valet scratch it, tax it and fill it with fuel, just opt out.

Jimjimhim

64 posts

1 month

Tuesday 7th May
quotequote all
Mojooo said:
The question to ask is why do they do it.

You then have you answer as to whether they should.
So why do they?

Robertb

1,498 posts

239 months

Tuesday 7th May
quotequote all
I saw a dealer ad which said they'd charge an administration fee if a customer-sourced finance company was used, which seemed fair enough.

The issue is that car dealers cannot put up their prices like everyone else, who just shovel on another RPI+ whatever each year and we just take it.



Edited by Robertb on Tuesday 7th May 14:37

Mojooo

12,775 posts

181 months

Tuesday 7th May
quotequote all
Jimjimhim said:
Mojooo said:
The question to ask is why do they do it.

You then have you answer as to whether they should.
So why do they?
Because they know that subconsciously people will focus on the bigger price in their head.
Its not different to restaurants doing a 12% service charge as a way of adding 12% onto the cost of the goods - they know that most people will just focus on the menu prices when ordering rather than also adding 12% every time.

If there was no benefit they simply wouldn't do it.

McLarenLad

101 posts

12 months

Tuesday 7th May
quotequote all
First time I heard of this until shopping around for a car the other day.

I got pre-approved finance via Zopa and was looking through their list of cars and stumbled across a Seat Ateca I liked the look of.

Spoke to the dealer and went through the spec of my car for trade in. Got to talking about financing the car and I mentioned I had been pre-approved elsewhere at quite a decent rate, to which the reply was;

"Oh, then it that case we charge a £399 admin fee for the car, as we don't deal with Zopa directly. They're not taking any of the risk, they just handle the finance and that's why we do it."

Part of me assumed it was normal practice, but reading through here, I'm guessing it isn't!

I walked away, because I got quite annoyed at the fact he kept saying "If you go through our finance provider, we can see if we can't get you a better deal on your trade-in".

ambuletz

10,788 posts

182 months

Tuesday 7th May
quotequote all
Mojooo said:
Jimjimhim said:
Mojooo said:
The question to ask is why do they do it.

You then have you answer as to whether they should.
So why do they?
Because they know that subconsciously people will focus on the bigger price in their head.
Its not different to restaurants doing a 12% service charge as a way of adding 12% onto the cost of the goods - they know that most people will just focus on the menu prices when ordering rather than also adding 12% every time.

If there was no benefit they simply wouldn't do it.
nowdays they probably aren't earning as much unfair commision on finance, so are looking for some other nonsense to get extra money

codenamecueball

530 posts

90 months

Tuesday 7th May
quotequote all
Jimjimhim said:
Someone mentioned car giant, so I just had a look on their website and it is clear that there is an admin fee. Some others might not be so clear I guess.
Peter Vardy have admin fees which previously wasn't disclosed but are now in the T&Cs. £299 on every purchase and it was £500+ if you took our third party finance. Ouch! Not shown on their AutoTrader ads, clear breach of AT T&Cs as it makes every car they sell £300 cheaper, AT not interested.

Jimjimhim

64 posts

1 month

Tuesday 7th May
quotequote all
ambuletz said:
Mojooo said:
Jimjimhim said:
Mojooo said:
The question to ask is why do they do it.

You then have you answer as to whether they should.
So why do they?
Because they know that subconsciously people will focus on the bigger price in their head.
Its not different to restaurants doing a 12% service charge as a way of adding 12% onto the cost of the goods - they know that most people will just focus on the menu prices when ordering rather than also adding 12% every time.

If there was no benefit they simply wouldn't do it.
nowdays they probably aren't earning as much unfair commision on finance, so are looking for some other nonsense to get extra money
It's an interesting theory.


If the overall cost is cheaper than a like for like car elsewhere then I don't really see what the issue is.

Cotty

39,649 posts

285 months

Tuesday 7th May
quotequote all
Jimjimhim said:
If the overall cost is cheaper than a like for like car elsewhere then I don't really see what the issue is.
How can you compare prices if you don't know the final price because of the hidden charges.

Rusty Old-Banger

3,977 posts

214 months

Tuesday 7th May
quotequote all
Plenty of dealers on PH, would be interesting to hear from some of them.

Jimjimhim

64 posts

1 month

Tuesday 7th May
quotequote all
Cotty said:
Jimjimhim said:
If the overall cost is cheaper than a like for like car elsewhere then I don't really see what the issue is.
How can you compare prices if you don't know the final price because of the hidden charges.
Car giant don't hide the admin fee. Which dealers do hide it?

Andy86GT

339 posts

66 months

Tuesday 7th May
quotequote all
Jimjimhim said:
ambuletz said:
Mojooo said:
Jimjimhim said:
Mojooo said:
The question to ask is why do they do it.

You then have you answer as to whether they should.
So why do they?
Because they know that subconsciously people will focus on the bigger price in their head.
Its not different to restaurants doing a 12% service charge as a way of adding 12% onto the cost of the goods - they know that most people will just focus on the menu prices when ordering rather than also adding 12% every time.

If there was no benefit they simply wouldn't do it.
nowdays they probably aren't earning as much unfair commision on finance, so are looking for some other nonsense to get extra money
It's an interesting theory.


If the overall cost is cheaper than a like for like car elsewhere then I don't really see what the issue is.
One issue would be if you bought a lemon and wanted to return (reject it) you wouldn't get the admin fee back

Cotty

39,649 posts

285 months

Tuesday 7th May
quotequote all
Jimjimhim said:
Car giant don't hide the admin fee. Which dealers do hide it?
You will have to ask the OP.

Jimjimhim

64 posts

1 month

Tuesday 7th May
quotequote all
Cotty said:
Jimjimhim said:
Car giant don't hide the admin fee. Which dealers do hide it?
You will have to ask the OP.
Ah ok so you don't know of any then?

Mojooo

12,775 posts

181 months

Wednesday 8th May
quotequote all
The Price Marking Order 2004 requires all goods for sale to include mandatory fees - therefore splitting the price up is already illegal when the fee is mandatory.

The whole point is to make it easy for the consumer to see a price and act accordingly.

Unless you want the ridiculous situation whereby milk is £89p in Tesco with a 3.4% admin fee and £79p in Sainsburys with a 4.5% admin fee.

As I say -give that we once had no admin fees it is obvious why they were brought in. For cars another reason is to get under a specific price on a search - e.g car is £9999 so under 310,0000 on search but had the admin fee on top.