Admin fee's on car used car purchase
Discussion
I've seen a few threads about this but I can't believe dealers are actually trying to convince the public that this is standard practise or indeed acceptable behaviour.
I've been looking at Fiesta ST's, initially found one at NMJ Motorhouse rang up, thought we had come to a deal and then they told me it was +£150 admin fee for purchase indemnity assurance, and it was not possible to buy the car without it!
This wasn't disclosed on the advertisement on AutoTrader which I saw, but in very small print on there own website they do mention it.
I walked away.
Then I found another at a franchise dealer (Hartwell Ford), again came to a deal and they insisted they couldn't sell the car without a £75 admin fee. Again not disclosed on any of there advertising. On this occasion I dug my heals in and got them to add £75 to the PX value of my car.
This sort of practise seems to have cropped up in the last few years with the era of the car supermarkets which prey on the unsuspecting and uninitiated but now seems to be spreading elsewhere...
I would have less of an objection if the fee were fairly and obviously indicated on the adverts, but it isn't. You don't find out about it until you’re about to sign. Obviously it undermines your ability to fairly compare prices because who knows what sort of admin fee might be lumped on top.
I can't pin point the exact legislation but I know it is contrary to both advertising standards and trading standards rules to offer something at a price and not make it possible to purchase at that price. But it seems this is becoming established practise and it's going unchecked.
Either compulsory fees should be included in the headline price or prominently displayed along side and advertisement or that price.
The dealers tried to spin me various lines to justify it "It's for a HPI check", "it's to cover you in case of fraud or if it's stolen". I'm buying from a trader, I don't need any of that because my consumer rights protect me - if you don't have clear title to sell the vehicle then my recourse is to sue you, the trader!
But surely everyone knows a HPI at retail price is just £20, or £25 for 5. I'd imagine a dealer is paying single digits per check!
I've been looking at Fiesta ST's, initially found one at NMJ Motorhouse rang up, thought we had come to a deal and then they told me it was +£150 admin fee for purchase indemnity assurance, and it was not possible to buy the car without it!
This wasn't disclosed on the advertisement on AutoTrader which I saw, but in very small print on there own website they do mention it.
I walked away.
Then I found another at a franchise dealer (Hartwell Ford), again came to a deal and they insisted they couldn't sell the car without a £75 admin fee. Again not disclosed on any of there advertising. On this occasion I dug my heals in and got them to add £75 to the PX value of my car.
This sort of practise seems to have cropped up in the last few years with the era of the car supermarkets which prey on the unsuspecting and uninitiated but now seems to be spreading elsewhere...
I would have less of an objection if the fee were fairly and obviously indicated on the adverts, but it isn't. You don't find out about it until you’re about to sign. Obviously it undermines your ability to fairly compare prices because who knows what sort of admin fee might be lumped on top.
I can't pin point the exact legislation but I know it is contrary to both advertising standards and trading standards rules to offer something at a price and not make it possible to purchase at that price. But it seems this is becoming established practise and it's going unchecked.
Either compulsory fees should be included in the headline price or prominently displayed along side and advertisement or that price.
The dealers tried to spin me various lines to justify it "It's for a HPI check", "it's to cover you in case of fraud or if it's stolen". I'm buying from a trader, I don't need any of that because my consumer rights protect me - if you don't have clear title to sell the vehicle then my recourse is to sue you, the trader!
But surely everyone knows a HPI at retail price is just £20, or £25 for 5. I'd imagine a dealer is paying single digits per check!
I don't think it's anything to do with Autotrader, it's the dealers that are wilfully misleading on pricing. They know what they are doing isn't legal but they also no one is doing anything about it. They'll pressure as many people as they can into paying it and manipulate it out of the price if they think it'll cost them the sale.
I've bought and sold enough cars to manage dealer tactics but the public at large, e.g. mums, dads and the elderly who buy a car once every 10 years or are of less robust personaility will likely just take it from the sales person.
I've bought and sold enough cars to manage dealer tactics but the public at large, e.g. mums, dads and the elderly who buy a car once every 10 years or are of less robust personaility will likely just take it from the sales person.
talksthetorque said:
Not only do they add Admin Fees to the price, some then have a cheek too add an extra apostrophe on to the fees that also shouldn't be there.
Daylight robbery
Just take it in to account in the price or haggle the same away.
Agreed on the apostrophe.Daylight robbery
Just take it in to account in the price or haggle the same away.
But the point is they don't tell you about the fee until you've agreed to the price and have sat down to do the paperwork. By this time, potentially, you've travelled hundreds of miles or arranged insurance for example, or you may well have gone to a different dealer altogether had the pricing been transparent from the outset
zeDuffMan said:
I'm guessing all these anecdotes apply to car supermaket-style outfits, which target people looking for a cheap car.
As said before the only way to get to the top of the search lists is to stick the car on as cheaply as possible. The profit has to come from somewhere else.
Not ideal but you'd probably do the same thing in their position. If you don't like it, buy from a main dealer (or don't buy a Ford).
Afraid not. One independent and one franchise (Hartwell) Ford dealer. I think the brand of vehicle is irrelevant - it would seem they are all at it.As said before the only way to get to the top of the search lists is to stick the car on as cheaply as possible. The profit has to come from somewhere else.
Not ideal but you'd probably do the same thing in their position. If you don't like it, buy from a main dealer (or don't buy a Ford).
If dealers can't make their money buying low and selling high they shouldn't be in business, it's purely a extra profit grab aimed at the unsuspecting.
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