Are "admin fees" legal?
Discussion
What Car? thinks not... " If a dealer doesn’t display the full price of a car, including any mandatory admin fee, it's contravening the Consumer Protection from Unfair Trading Regulations 2008, because doing so is classed as a ‘misleading action’. "
Why do I ask?
I'm generally well aware of this scam, and went this evening to see a car at a garage, advertised on Autotrader at £7500.
There's nothing on AT about an admin fee, or anything on the cars themselves.
Turn's out there's a poster mentioning it on the wall, next to the door, that you'd see on your way out of the sales office, but not on the way in...
I put down a "totally-refundable-no-danger-no-brainer" holding deposit of £100 (on credit card
) as the car had no service history print out (a Skoda; no stamps in a book, it's all on the dealer's computer... or not...) to keep the car while they chased up the history - and the service that's due, and sorting the EML that's on.
They took the money before starting the paperwork... they didn't so much mention the admin fee as me say "I think you've got the total wrong", at which point they explained, and said that it was non-negotiable, you should have known about it, it's on the wall there and on our website. I said, and showed, that it's not on Autotrader, where I'd seen the car... and that I knew this, as I checked carefully for admin fees before bothering. I said you might as well refund me now then, as I won't pay that. Oh, we can't do that sir, the business manager's gone home and he's got the refund code for the machine, you'll have to ring tomorrow.
Oh, and apparently, I'm the only person who has ever queried it, leave alone refused!
Anyhow, I'm somewhat miffed and want to see if there's any further info on the legal position if they are difficult tomorrow... apart from doing a chargeback on the credit card if necessary.
The silly thing is, if the ticket price was appropriately higher and included the "admin", I would still have been buying the car (assuming the service/eml/history were addressed); I'm sure there's no real way of preventing this practice, but I will NOT support it!
Why do I ask?
I'm generally well aware of this scam, and went this evening to see a car at a garage, advertised on Autotrader at £7500.
There's nothing on AT about an admin fee, or anything on the cars themselves.
Turn's out there's a poster mentioning it on the wall, next to the door, that you'd see on your way out of the sales office, but not on the way in...
I put down a "totally-refundable-no-danger-no-brainer" holding deposit of £100 (on credit card
) as the car had no service history print out (a Skoda; no stamps in a book, it's all on the dealer's computer... or not...) to keep the car while they chased up the history - and the service that's due, and sorting the EML that's on.They took the money before starting the paperwork... they didn't so much mention the admin fee as me say "I think you've got the total wrong", at which point they explained, and said that it was non-negotiable, you should have known about it, it's on the wall there and on our website. I said, and showed, that it's not on Autotrader, where I'd seen the car... and that I knew this, as I checked carefully for admin fees before bothering. I said you might as well refund me now then, as I won't pay that. Oh, we can't do that sir, the business manager's gone home and he's got the refund code for the machine, you'll have to ring tomorrow.
Oh, and apparently, I'm the only person who has ever queried it, leave alone refused!
Anyhow, I'm somewhat miffed and want to see if there's any further info on the legal position if they are difficult tomorrow... apart from doing a chargeback on the credit card if necessary.
The silly thing is, if the ticket price was appropriately higher and included the "admin", I would still have been buying the car (assuming the service/eml/history were addressed); I'm sure there's no real way of preventing this practice, but I will NOT support it!
The problem is that the 'admin' fee is likely to be the salesman's basic commision, or to cover the interest on their stocking finance, or whatever, and they aren't going to waive it because it makes them many thousands over a year if they're a decent sized operation. You mention a Business Manager which suggests a franchised dealer and there are a few groups - notably one whose parent company's name ends with dragon - that always stick on fees above and beyond the advertised price. I'd just walk away but you've then got the problem of their no argument deposit suddenly becoming a big argument when you want it all back.
pavarotti1980 said:
popeyewhite said:
One wonders why the dodgy car salesman/garage stereotype exists... . and before anyone pipes up "Oi we're not all like that", I know. But I wonder in what other walk of life a normal person is likely to be bullsh*tted so matter-of-factly.
Estate agents?SCEtoAUX said:
Just car dealers trying to scam a few more quid out of consumers. They really don't help themselves sometimes.
The admin costs should be built into the profit margin on the car.
Just a way of making the car appear cheaper than it actually is so that it shows at the top of any search on Autotrader etc, when price is put in as part of the search criteria.The admin costs should be built into the profit margin on the car.
They're a huge con and something needs doing about it, supermarkets dont charge you a transaction fee its an overhead.
I won some tickets for a gig weekend, everyone who enters seems to win up to 6 free passes but there is a £12 per head booking fee. They dont even send you a ticket, you turn up and they give you the passes on arrival in 10 seconds as they check your name off on a spreadsheet.
I won some tickets for a gig weekend, everyone who enters seems to win up to 6 free passes but there is a £12 per head booking fee. They dont even send you a ticket, you turn up and they give you the passes on arrival in 10 seconds as they check your name off on a spreadsheet.
I bought the missus a car from a large dealer near Glasgow. Exactly the same situation. There was a price on the screen and it was what I was willing to pay. The salesman then casually dropped in a £300 "admin fee" onto the total. I asked him where this was displayed on the advert, he couldn't. There was a large poster on the wall behind reception that stated some garbage about a fee for preparing the vehicle. They expected me to pay for them to prepare the vehicle for sale..... Unbelievable.
As I was walking out, I could see the salesman gesturing over to a guy in a shiny suit in the corner. He came briskly over to see why we were leaving. I explained the situation and that there was no chance I was paying anything extra on top of what we had agreed as a price for the vehicle. And the fact that I thought what they were doing was not only unethical but more than likely, illegal. The fee was waved on the spot, and I was on my way.
They will get away with it while ever they can. Don't let them.
As I was walking out, I could see the salesman gesturing over to a guy in a shiny suit in the corner. He came briskly over to see why we were leaving. I explained the situation and that there was no chance I was paying anything extra on top of what we had agreed as a price for the vehicle. And the fact that I thought what they were doing was not only unethical but more than likely, illegal. The fee was waved on the spot, and I was on my way.
They will get away with it while ever they can. Don't let them.
andburg said:
They're a huge con and something needs doing about it, supermarkets dont charge you a transaction fee its an overhead.
I won some tickets for a gig weekend, everyone who enters seems to win up to 6 free passes but there is a £12 per head booking fee. They dont even send you a ticket, you turn up and they give you the passes on arrival in 10 seconds as they check your name off on a spreadsheet.
Admin fee's are getting worse on tickets to gigs etc. It significantly changes the cost of a ticket, I've seen 10% before. Tickets appear to be £20 but add everything on and not much change out of £25. It's all done online with apps now generally meaning you print your own or use an app. I won some tickets for a gig weekend, everyone who enters seems to win up to 6 free passes but there is a £12 per head booking fee. They dont even send you a ticket, you turn up and they give you the passes on arrival in 10 seconds as they check your name off on a spreadsheet.
HTP99 said:
SCEtoAUX said:
Just car dealers trying to scam a few more quid out of consumers. They really don't help themselves sometimes.
The admin costs should be built into the profit margin on the car.
Just a way of making the car appear cheaper than it actually is so that it shows at the top of any search on Autotrader etc, when price is put in as part of the search criteria.The admin costs should be built into the profit margin on the car.
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