Admin charges on buying a secondhand car.

Admin charges on buying a secondhand car.

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Discussion

hollydog

Original Poster:

1,108 posts

192 months

Friday 19th September 2014
quotequote all
Just started looking for a car for the wife.
I'm absolutely amazed how some dealers manage to sell them.
We go for a test drive after we sit down to discuss a deal. Most are just not interested in any discounts and what makes it worst some want £100 on top for admin costs and to prep the car.
Never heard of any thing so ridiculous in my life. Surely that should be in with the screen asking price.

Me being me I just walk away. Just for the principle.

bobbo89

5,207 posts

145 months

Friday 19th September 2014
quotequote all
When I bought by old Civic I told them they could either drop the admin charge or lose the sale. The price in the window is the price in the window IMO, if I cant give them that amount and drive away surely that's not what they can advertise it as!

vikingaero

10,313 posts

169 months

Friday 19th September 2014
quotequote all
Cars are the mechanism by which finance/G(cr)AP/Warranties are sold. If they could drop the cars and sell the guff then most dealers would do so! biggrin

papa3

1,414 posts

187 months

Friday 19th September 2014
quotequote all
vikingaero said:
Cars are the mechanism by which finance/G(cr)AP/Warranties are sold. If they could drop the cars and sell the guff then most dealers would do so! biggrin
^ Unfortunately increasingly true.

I hate the admin fee trend that seems wide spread now. We never did it, screen price was ready to go minus insurance.

Ari

19,347 posts

215 months

Friday 19th September 2014
quotequote all
It's a clever idea. Add an admin charge, watch punter get all puffed up and indignant, agree to drop admin charge, sell car at full screen price with no discount to a punter that thinks he's 'won'!

Very cunning.

Personally I couldn't care less. The price I pay and the car I get is what matters, they can work the maths out how they like.

Jasandjules

69,879 posts

229 months

Friday 19th September 2014
quotequote all
As above, what is the overall price of the vehicle? If better than others, job done?

romeogolf

2,056 posts

119 months

Friday 19th September 2014
quotequote all
It's the "car-supermarket" format. Sticker price, no negotiation at all, and a £99 (plus vat, usually) "admin" fee. Some (Cargiant) won't even let you test drive the car beyond taking it up the car park and back.

Spare tyre

9,554 posts

130 months

Friday 19th September 2014
quotequote all
i went to buy a 407 coupe a few years ago, was lets say 5grand - I was willing to pay 5 grand if the car was ok

Go in, get all the guff about finance - dont want it thanks

I then get told that that is the base price - there are essential extras on top

Never did buy that car

Otispunkmeyer

12,584 posts

155 months

Friday 19th September 2014
quotequote all
papa3 said:
vikingaero said:
Cars are the mechanism by which finance/G(cr)AP/Warranties are sold. If they could drop the cars and sell the guff then most dealers would do so! biggrin
^ Unfortunately increasingly true.

I hate the admin fee trend that seems wide spread now. We never did it, screen price was ready to go minus insurance.
Currently buying a house...I've got admin fee requests coming out of my ears! "Oh you'd like to breathe the air in our office whilst you sign your contracts? £25 air admin charge please, oh and another £25 for us to watch you sign the contract"

Does my head in, grubby little middle men nickle n dimeing you for nothing. I should have become a professional obstructor. Just sit in the middle of a process, holding it up unless someone pays me money for my inconvenience.

Edited by Otispunkmeyer on Friday 19th September 16:48

hollydog

Original Poster:

1,108 posts

192 months

Friday 19th September 2014
quotequote all
I must admit. I asked what the administration charge was for. There reply was. An invoice and to clean the car. That just instantly start my p__s boiling.

Motorrad

6,811 posts

187 months

Friday 19th September 2014
quotequote all
Not a problem to me, I just negotiate the deal and then when it comes time to complete it just refuse to pay the admin charge.

I've only ever had one dealer dig his heels in and they rang me back the following week to see if I still wanted their car.

Prawo Jazdy

4,944 posts

214 months

Friday 19th September 2014
quotequote all
hollydog said:
I just walk away.
I'm afraid I can't give you the full ten points. The correct answer was not to go there in the first place.

When I see admin fees in adverts it has the same effect as people not putting important information, or writing "PRICE IS £7900 NOT £790 SORRY NO TIMWASTERS", i.e. I write it off as not worth the hassle of even ringing up.

It obviously depends what we're talking about though. A car that's commonly come by, then don't bother. If it's a rare engine, unusual colour with the bi-lateral buttscratcher option ticked (and that's the spec you've been craving) then it might be worth your while.

Edited by Prawo Jazdy on Friday 19th September 17:17

KTF

9,804 posts

150 months

Friday 19th September 2014
quotequote all
From the local shed near me:
Their FAQ said:
What is the £125 +VAT admin fee for?

The administration fee covers the RAC vehicle inspection and HPI inspection. The minimum you would pay for the lowest level Essential RAC Inspection, if you booked this direct with the RAC as an RAC member, would be £135 – the maximum you would pay as a non-member for a 4 x 4 over 2500cc would be £346.00. The price for an HPI check, which checks if a car has finance owing, is stolen, cloned, written off or clocked, is £19.99. Our administration fee is not only great value but also provides you with peace of mind.
Not that I would pay for an inspection in the first place, but when you read the RAC inspections that are available on their site, they arent worth whatever made up cost they are anyway.

HPI will cost them peanuts given the volume they process.

The fee is (almost) pure profit, just like all the other crap they try to sell you. It would be OK if you could opt out as per the Ryanair model but you cant for many of them so why not include it in the cost of the car in the first place.

Whats that you say, you want the day drive home insurance as well?

Their FAQ said:
We can provide you with drive away insurance valid for 5 days (this incurs a £12.50 + VAT administration fee) ensuring you are covered for the journey home.
Dont forget the VAT because as we all know, Joe Public never pays VAT normally... FFS!

Edited by KTF on Friday 19th September 17:22

Devil2575

13,400 posts

188 months

Friday 19th September 2014
quotequote all
It seems to be the way things are done these days. I went to view a car that was up for about 6k which was a competetive price. When we went through the numbers there was the admin fee and then all the extras they tried to sell me, such as a warranty. Without the extra the car came with a 30 day warranty that covered up to £500. Anything more and it's tough st, or relying on the SOGA so bks really. I guess it means they keep the sticker price low which attracts customers and then once you've set your heart on the car they hit you with it.
Interestingly enough on a £6k car they tried to flog me £1.5k worth of extras; 2 years warranty, paint work and interior protection, MOT insurance and a servicing pack. The look on the guys face when I said I didn't want any was a picture, like i'd just taken a st on his desk. As it was the car wasn't right so we didn't do the deal anyway.

Sheepshanks

32,747 posts

119 months

Friday 19th September 2014
quotequote all
KTF said:
From the local shed near me:
Their FAQ said:
What is the £125 +VAT admin fee for?

The administration fee covers the RAC vehicle inspection and HPI inspection. The minimum you would pay for the lowest level Essential RAC Inspection, if you booked this direct with the RAC as an RAC member, would be £135 – the maximum you would pay as a non-member for a 4 x 4 over 2500cc would be £346.00. The price for an HPI check, which checks if a car has finance owing, is stolen, cloned, written off or clocked, is £19.99. Our administration fee is not only great value but also provides you with peace of mind.
Not that I would pay for an inspection in the first place, but when you read the RAC inspections that are available on their site, they arent worth whatever made up cost they are anyway.
The dealer RAC inspections are just a branding thing - the inspection is carried out by dealers' own staff.

KTF

9,804 posts

150 months

Friday 19th September 2014
quotequote all
Sheepshanks said:
The dealer RAC inspections are just a branding thing - the inspection is carried out by dealers' own staff.
I suspected as much.

Hoofy

76,345 posts

282 months

Friday 19th September 2014
quotequote all
£100? I thought £25 was bad enough. I think the professional response is, "Get fked!"

Obviously, you walk out afterwards rather than completing the deal. hehe

Or you charge them X+20% to process the admin fee payment.

Hoofy

76,345 posts

282 months

Friday 19th September 2014
quotequote all
Motorrad said:
Not a problem to me, I just negotiate the deal and then when it comes time to complete it just refuse to pay the admin charge.

I've only ever had one dealer dig his heels in and they rang me back the following week to see if I still wanted their car.
Funny that. smile

Ozzie Osmond

21,189 posts

246 months

Friday 19th September 2014
quotequote all
As far as I'm concerned any request for an "administration fee" would be met with an immediate and equal claim for a "payment discount"!

vikingaero

10,313 posts

169 months

Friday 19th September 2014
quotequote all
I'm going to play this game next time we have to quote for car dealers. Most of the time we quote high because we don't want the business because we are too busy. I'll still quote high and add a £9,999 admin fee. biggrin