Used car "admin fees"
Discussion
I'd tell them what the price I was paying for the car, if they wanted to add an admin fee then they reduce the sale price to accommodate it accordingly, but the price I want to pay stays the same or I take my business elsewhere.
I got my new car 6 weeks ago, just stated a price I was happy to pay, no extra haggling required just a take it or leave it choice for the dealer....they took it.
I got my new car 6 weeks ago, just stated a price I was happy to pay, no extra haggling required just a take it or leave it choice for the dealer....they took it.
750turbo said:
£10 Commission on a car - Shocking! (Even Arnold Clark pay £50, or used to)
I think volume dealers now have moved the focus of commission away from the low profit margin in the car itself and on to a percentage of admin fees, tyre insurance, GAP insurance, finance commission, servicing packs, extended warranties, etc.93DW said:
Some of these replies are amusing, Some of you have been watching too much Wheeler Dealers!
The dealer I work for has a £99 fee which is for a mechanical inspection by the AA, which every sale is subject to. To make it crystal clear we even put it at the bottom of every in advert an in capital letters as well so it stands out from the rest of the advert. Would any of you say that's unfair?
Yes, I would say that's unfair.The dealer I work for has a £99 fee which is for a mechanical inspection by the AA, which every sale is subject to. To make it crystal clear we even put it at the bottom of every in advert an in capital letters as well so it stands out from the rest of the advert. Would any of you say that's unfair?
I am currently selling my boat. It hasn't been used for two years, so I need to get it valeted and antifouled. This work will cost me £1,300.00.
The reason that I am having this work done is to help sell the boat. There isn't a hope in Hell that I could ask the buyer to pay this on top of the asking price.
You should add the £99.00 onto the asking price and advertise that all your cars come with an AA Inspection report. Much more professional, IMHO.
daemon said:
750turbo said:
£10 Commission on a car - Shocking! (Even Arnold Clark pay £50, or used to)
I think volume dealers now have moved the focus of commission away from the low profit margin in the car itself and on to a percentage of admin fees, tyre insurance, GAP insurance, finance commission, servicing packs, extended warranties, etc.
(He commented that he would make more commission on a Jazz, I was buying a Civic Type R)It would of course make sense, only if it could be executed in a proper manner.
daemon said:
k-ink said:
You don't have to pay it. Make them an offer and be prepared to walk away. Don't ask for a discount. Don't ask for their best price. Just make a firm bid and leave it at that. Obviously it will help if you are a cash buyer with no px. I've bought some mint cars over the years and never paid full price.
These days that makes you their worst kind of customer - no commission on the finance and no profit on your trade indon4l said:
Yes, I would say that's unfair.
I am currently selling my boat. It hasn't been used for two years, so I need to get it valeted and antifouled. This work will cost me £1,300.00.
The reason that I am having this work done is to help sell the boat. There isn't a hope in Hell that I could ask the buyer to pay this on top of the asking price.
You should add the £99.00 onto the asking price and advertise that all your cars come with an AA Inspection report. Much more professional, IMHO.
Totally agree!!I am currently selling my boat. It hasn't been used for two years, so I need to get it valeted and antifouled. This work will cost me £1,300.00.
The reason that I am having this work done is to help sell the boat. There isn't a hope in Hell that I could ask the buyer to pay this on top of the asking price.
You should add the £99.00 onto the asking price and advertise that all your cars come with an AA Inspection report. Much more professional, IMHO.
Dealers need to work out their costs and put them into the selling price, rather than advertising cars for less than they are actually going to cost the buyer once they start adding fees on.
It's unfair, misleading and IMHO borderline unscrupulous - hardly any wonder many dealers are more commonly described as "stealers"!
datum77 said:
<snip>
If you deal with a company that adds one or more of these fees to the cost of the vehicle - my advice is to insist that they remove them, and if they don't, then walk away. You are NOT paying the advertised price. That is wrong. You don't reach the end of the checkout at Tesco's and they tell you that there is a "handling fee" to pay, do you?.
at one time there was a situation with handling fees for card payments and such a phrase was included on reciepts.If you deal with a company that adds one or more of these fees to the cost of the vehicle - my advice is to insist that they remove them, and if they don't, then walk away. You are NOT paying the advertised price. That is wrong. You don't reach the end of the checkout at Tesco's and they tell you that there is a "handling fee" to pay, do you?.
93DW said:
Some of these replies are amusing, Some of you have been watching too much Wheeler Dealers!
The dealer I work for has a £99 fee which is for a mechanical inspection by the AA, which every sale is subject to. To make it crystal clear we even put it at the bottom of every in advert an in capital letters as well so it stands out from the rest of the advert. Would any of you say that's unfair?
What's next then, a separate cost for PDR and smart repairs?The dealer I work for has a £99 fee which is for a mechanical inspection by the AA, which every sale is subject to. To make it crystal clear we even put it at the bottom of every in advert an in capital letters as well so it stands out from the rest of the advert. Would any of you say that's unfair?
IMO the car should be presented for sale with all costs incurred by the dealer wrapped up in the retail price. It's just a way of separating out costs to appear further up the web price listings.
It's more common practise with mainstream dealers who are all scrapping over pricing on the various car selling websites
lord trumpton said:
IMO the car should be presented for sale with all costs incurred by the dealer wrapped up in the retail price.
This is, I think my overall point. Charge what you like, and the buyer will either pay or not, but don't be adding on your costs like this. I run my own business. I don't give customers a quotation which says "Consultancy Fees £xxx, Accountant's Charges £xx"
Where does this go next? Adding on the price of rental of the forecourt area where the car has been standing? No, it's part of the cost of doing business, which you need to offset against the profit which you make.
POORCARDEALER said:
Chancers, the lot of them.
Another idiot spouting sweeping statements, you really should think before you post.... You sre buying cars that are near the end of life for the price of a good night out.
right, so you think £1000 is the price of a good night out? I am seeing the irony in your username now.... Another idiot spouting sweeping statements, you really should think before you post.... You sre buying cars that are near the end of life for the price of a good night out.
Personally I don't think these fees should be banned IF they are clearly stated up front. Clearly means in the same size text as the main advert though.
However I do agree they give a very bad impression on the dealer. As others have said, it feels like you are being cheated, even if you are not. For that reason I also will tend to avoid adverts like that unless they look like a better than average deal overall.
And if any extras like this were sprung on me after viewing a car I would lose all trust in the dealer and walk straight away.
brman said:
POORCARDEALER said:
Chancers, the lot of them.
Another idiot spouting sweeping statements, you really should think before you post.... You sre buying cars that are near the end of life for the price of a good night out.
right, so you think £1000 is the price of a good night out? I am seeing the irony in your username now.... Another idiot spouting sweeping statements, you really should think before you post.... You sre buying cars that are near the end of life for the price of a good night out.
Personally I don't think these fees should be banned IF they are clearly stated up front. Clearly means in the same size text as the main advert though.
However I do agree they give a very bad impression on the dealer. As others have said, it feels like you are being cheated, even if you are not. For that reason I also will tend to avoid adverts like that unless they look like a better than average deal overall.
And if any extras like this were sprung on me after viewing a car I would lose all trust in the dealer and walk straight away.
The market is so price led its a trick so they can advertise cheaper than other dealers.
Anyone buying a car from the likes of Hanshaws, Arnold Clark is asking for it, but with the demise of the smaller local dealer this is the future of car buying, fixed pricing and add on after add on.
When I was Tech in a main stealer I was an approved AA vehicle inspector. My time was charged to sales, who in turn lost the cost / added it into the purchase price, as many of you are aware each department of the dealer is financially independent.
In the long run it saved Sales money as in some cases where the manufacturer sent us "approved used cars" from other sources, my check highlighted some of them were nowhere near the condition the salesmen were led to believe and returned without going out front.
In the long run it saved Sales money as in some cases where the manufacturer sent us "approved used cars" from other sources, my check highlighted some of them were nowhere near the condition the salesmen were led to believe and returned without going out front.
93DW said:
Some of these replies are amusing, Some of you have been watching too much Wheeler Dealers!
The dealer I work for has a £99 fee which is for a mechanical inspection by the AA, which every sale is subject to. To make it crystal clear we even put it at the bottom of every in advert an in capital letters as well so it stands out from the rest of the advert. Would any of you say that's unfair?
it is unfair because the fee is not part of the advertised price. If you display that fee in the same sized font as the sticker price I'll concede its fair. If it is smaller you are hiding added costs from customers. The dealer I work for has a £99 fee which is for a mechanical inspection by the AA, which every sale is subject to. To make it crystal clear we even put it at the bottom of every in advert an in capital letters as well so it stands out from the rest of the advert. Would any of you say that's unfair?
Why do you assume customers will all want an RAC inspection? Those inspections are a waste of money in my view.
k-ink said:
daemon said:
k-ink said:
You don't have to pay it. Make them an offer and be prepared to walk away. Don't ask for a discount. Don't ask for their best price. Just make a firm bid and leave it at that. Obviously it will help if you are a cash buyer with no px. I've bought some mint cars over the years and never paid full price.
These days that makes you their worst kind of customer - no commission on the finance and no profit on your trade inGassing Station | General Gassing | Top of Page | What's New | My Stuff