£149 purchase 'admin' fee at car supermarket
Discussion
Interesting experience buying a car for my daughter. I'm intrigued to see what others think.
I visit a well-known Yorkshire-based seller. We agree on a 3yo Peugeot 108, which at £5694 looks fairly priced.
Sale goes like this:
Salesperson: 'so the car is £5694 and of course there's the £149 admin fee. For that you get the car re-valeted, drive-away insurance and an HPI certificate...."
Rayy: 'I'm not paying the admin fee.'
Salesperson: ...'so the total to pay is £5843...'
Rayy: 'I don't think you heard me. I'm not paying the admin fee.'
Salesperson: 'Oh. I don't think that's possible.'
Rayy: 'I'm not paying.'
Salesperson: 'I'll go check.' (returns 2 mins later). Ok. That's fine. You're the first person I know of that has ever refused.'
Is that really so? It seemed such an obvious attempt to charge a lot for very little. And its existence, while mentioned on the supermarket's web site, is tucked away in the small print.
In the event the sale went smoothly. We drove off in the car an hour later - and they even re-cleaned it inside and outside so that it was spotless.
I visit a well-known Yorkshire-based seller. We agree on a 3yo Peugeot 108, which at £5694 looks fairly priced.
Sale goes like this:
Salesperson: 'so the car is £5694 and of course there's the £149 admin fee. For that you get the car re-valeted, drive-away insurance and an HPI certificate...."
Rayy: 'I'm not paying the admin fee.'
Salesperson: ...'so the total to pay is £5843...'
Rayy: 'I don't think you heard me. I'm not paying the admin fee.'
Salesperson: 'Oh. I don't think that's possible.'
Rayy: 'I'm not paying.'
Salesperson: 'I'll go check.' (returns 2 mins later). Ok. That's fine. You're the first person I know of that has ever refused.'
Is that really so? It seemed such an obvious attempt to charge a lot for very little. And its existence, while mentioned on the supermarket's web site, is tucked away in the small print.
In the event the sale went smoothly. We drove off in the car an hour later - and they even re-cleaned it inside and outside so that it was spotless.
Rayy said:
I arranged car tax before driving off - took 2 mins online. I'd pre-arranged insurance to begin cover that day. The supermarket completed the V5c asnd gave it to me to sign and post.
Paying the admin fee means they take care of all of this - but FFS it's a few minutes' work.
They should have done the V5 - right pain in the proverbial for them if you forgot.Paying the admin fee means they take care of all of this - but FFS it's a few minutes' work.
I had similar at a Skoda dealer several years ago. Their demo car was available, it was what I wanted spec and colour wise, I needed a car so couldn't wait for a factory order. Quick drive to check all OK, was happy to take it at the price they'd set.
So they do the paperwork. No, I don't want gap insurance. No, I don't want wheel & tyre insurance. No, I don't want Supagard. OK, prints out invoice and goes to get the card machine and they've stuck a £99 admin fee on. Another half hour of theatrics, "I'll have to speak to manager" guff before producing a new invoice with a £99 discount applied to cancel out the £99 admin fee that was still charged.
I assume most people either think this is normal or just don't want to kick up a fuss so just pay it.
So they do the paperwork. No, I don't want gap insurance. No, I don't want wheel & tyre insurance. No, I don't want Supagard. OK, prints out invoice and goes to get the card machine and they've stuck a £99 admin fee on. Another half hour of theatrics, "I'll have to speak to manager" guff before producing a new invoice with a £99 discount applied to cancel out the £99 admin fee that was still charged.
I assume most people either think this is normal or just don't want to kick up a fuss so just pay it.
It seems every car dealer whatever their size is getting in on the "admin fee" scam, I've had it twice in the last 12 months, once at a car supermarket, they said it covered valeting amongst other things, I refused and told them not to valet it but they did anyway.
The second time was at a local dealer, not a one man band but not far off and they tried adding on a £49 admin fee, that was quickly removed too.
I think it's quickly becoming an industry standard fee they try to add.
The second time was at a local dealer, not a one man band but not far off and they tried adding on a £49 admin fee, that was quickly removed too.
I think it's quickly becoming an industry standard fee they try to add.
Thing is they try it on as probably at least 50% of the buyers pay it and most of which are buying on finance so it just gets thrown into that and the buyer doesn't care at the time. The select few that are buying cash will more than likely notice the extra charges and are likely to question them.
The finance is a good cover up for these admin fees as many dealers offer the chance to drive away in a newish car within the hour, a £99 admin fee is not going to bother them when they are already paying apr.
The finance is a good cover up for these admin fees as many dealers offer the chance to drive away in a newish car within the hour, a £99 admin fee is not going to bother them when they are already paying apr.
Vardy are the worst. They flat refused to omit it when I bought a car for the DiL.
She wanted the car and they knew it but I went mental. Eventually settled on extra work to the car and flowers and wine on the back seat at collection.
I'm buying a Transit from them just now and have agreed the price to change. If they mention a fee, I'm walking.
She wanted the car and they knew it but I went mental. Eventually settled on extra work to the car and flowers and wine on the back seat at collection.
I'm buying a Transit from them just now and have agreed the price to change. If they mention a fee, I'm walking.
I nearly bought a second hand Africa Twin at a large local bike shop. They wanted to add £85 for admin.
What does the admin involve? I asked. Completing the V5 and invoice, was the reply. 2 minutes work.
They refused to shift on price, so I walked away.
The following week a number of brand new Africa Twins hit the market at a dealer further north, at greatly reduced prices, in fact lower than the second hand one I'd been interested in. I bought one of these, and there was no admin charge!
What does the admin involve? I asked. Completing the V5 and invoice, was the reply. 2 minutes work.
They refused to shift on price, so I walked away.
The following week a number of brand new Africa Twins hit the market at a dealer further north, at greatly reduced prices, in fact lower than the second hand one I'd been interested in. I bought one of these, and there was no admin charge!
Rayy said:
Salesperson: 'so the car is £5694 and of course there's the £149 admin fee. For that you get the car re-valeted, drive-away insurance and an HPI certificate...."
Re-valeted? So it's been valeted but they're going to charge you to do it again?Drive away insurance? You're going to have to insure it anyway, so surely you'll have insured it to drive away.
HPI certificate? You can HPI it yourself for peanuts.
Do they think people were born yesterday?
brickwall said:
It's all b
ks. Dealers are smashing the headline price down to get to the top of the online listings, only to bump it back up again with an 'admin fee'. As others have said, this seems exactly the kind of thing the ASA and trading standards was invented for.
I couldn't agree more - it's just a con. Put it in the price in the 1st place! ks. Dealers are smashing the headline price down to get to the top of the online listings, only to bump it back up again with an 'admin fee'. As others have said, this seems exactly the kind of thing the ASA and trading standards was invented for. 
ToothbrushMan said:
I'm not against admin fees but they have to be reasonable.
the main thing is that with a car you would expect all the admin to be factored into the price of the car.
could this be the next big PPI? "have you been mis sold admin fees?
Would one accept putting shopping through the till at Sainsbury's and then having a £10 'admin charge' applied? Of course not. It's just part of the shop doing business. Car dealers have found a way to tack on a charge and make an extra cheeky bit of margin. Like others here, I'd walk rather than have the piss taken.the main thing is that with a car you would expect all the admin to be factored into the price of the car.
could this be the next big PPI? "have you been mis sold admin fees?
I suspect the majority of folk who subscribe to this forum are savvy enough to refuse to pay a so-called admin fee, I know I would refuse straight away as soon as I was made aware of it. However we are just a tiny fraction of the car buying public, just think about your parents, aunts, uncles and even naive kids, all going to a dealer and not having the guts/savvy to refuse to pay an admin fee. I suspect that the huge majority just pay it and never think to question it, hence why dealers will continue with the practice.
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