Administration Fees on used car sales. What are your thoughts?

KillerHERTZ

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Purchased two tickets for a concert , next year , at the Hydro.

£15 per ticket booking fee + £2.75 per ticket for a handling charge even though they were E - tickets. :rolleyes: , multiply those "fees" for every ticket for every concert then you have made yourself a tidy bit of ££ on the side , you would think the amount we were charged for the tickets then at least they would include all extras.

We were stung for a £50 "service" charge at the Shard a few years ago , wouldn`t have minded too much if the food was decent , nice view though.

Just another way to squeeze a few ££ out of the customers , as per the "admin" charge when buying a car.

K
I worked at a large venue for 10 years in the early 00s, the booking fees paid for the Box Office staff wages.

The margins on venues is so small they had to do that to stay afloat.
 

Mactech

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That’s only admirable if you aren’t just cutting your nose off.

I certainly wouldn’t be missing out on the ideal spec’d car for the sake of £199.
I certainly agree, however the advertised price is not the actual price of the car (which is fundamentally wrong) and if the actual price is non negotiable I would walk.
When I showed interest in a certain car, most traders were happy to 'pay the admin costs themselves' !
It just means they start at a higher level than I am probably prepared to pay.
 

Abb

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It would be a fairly unlikely event that that there would only be one ideally spec'd car in the market place and it just happened to be at the dealership that charged £199 admin fee surely. ;)
I am one of those that DID end up paying the admin fee and did not manage to get 50p off the screen price. As much as I would have loved to walk away, it would only be me losing out. It was the ideal spec......so much so, over 12 months later I am yet to see such a model with the same spec.

I may not agree with it, but I would not let it stand in the way of me purchasing a specific car.
 

John

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Generally I would not even entertain a car where the dealer charged an admin fee as I feel it's taking the

I wouldn't cut my nose off to spite my face though and if a car was otherwise spot-on I would consider it.

It's not a likely situation for me to be in but when I've helped other people buy a car, I've seen a few dealers stating there is a fee and I move on.
 

Benz17

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I am one of those that DID end up paying the admin fee and did not manage to get 50p off the screen price. As much as I would have loved to walk away, it would only be me losing out. It was the ideal spec......so much so, over 12 months later I am yet to see such a model with the same spec.

I may not agree with it, but I would not let it stand in the way of me purchasing a specific car.
Hand on heart, if I was in this same or similar situation, then I would also do exactly the same, it’s hard enough finding right colour/spec car at best of times, and to pass it by for a couple of hundred quid, for me it would not be worth it.
 
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KennyN

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I worked at a large venue for 10 years in the early 00s, the booking fees paid for the Box Office staff wages.

The margins on venues is so small they had to do that to stay afloat.

The tickets were purchased online through Ticketmaster so unless they pay the Hydro box office these booking fees then the ££ goes straight into TM`s pocket.

£15 x 14500 (capacity) = £217500 per show just in booking fees , not a bad earner.

K
 

E55BOF

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Regarding car dealers' extra fees, I'd hope most of us would pay them if the car was the one we wanted and the overall deal was good; it would be stupid not to do so.
 
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Regarding car dealers' extra fees, I'd hope most of us would pay them if the car was the one we wanted and the overall deal was good; it would be stupid not to do so.
If that's the case then fine but I know of one member here who enquired about a car and found that the dealer was loading an additional £2000 for paint preparation, administration charges and other items.

This was on a car advertised at £30k,
unsurprisingly they declined. I don't see how that level of markup for additional items can be justified.
 

A.J.

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Regarding car dealers' extra fees, I'd hope most of us would pay them if the car was the one we wanted and the overall deal was good; it would be stupid not to do so.

If you are happy paying hidden extras on the purchase of a car then fine, no problem. I personally am not prepared to pay hidden charges that are added without previously knowing about them. It's not the money, it's the principle ! I do not like people having my leg up :rolleyes::)
 

markjay

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If you are happy paying hidden extras on the purchase of a car then fine, no problem. I personally am not prepared to pay hidden charges that are added without previously knowing about them. It's not the money, it's the principle ! I do not like people having my leg up :rolleyes::)

That's the key word for me - 'hidden'. I'd agree with you regarding any cost that isn't advertised up-front.

Those who hide the additional cost, do so in part because they know that the more customers invest time and mental energy in the buying process, the less likely they are to abort once the hidden fees are made known.

But anything displayed up-front? I have no issue with it. As far as I am concerned the trader can advertise the price of the wheels separate to the price of the rest of the car - they can structure the price however they want to, as long as it isn't misleading and there's no deception.
 

Benz17

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I think many wouldn’t pay hidden charges, especially without previously knowing about them, but this thread is about the admin charge, and the ones and including me, who say yes we would pay the known admin charge, rather then walk away.
 

chic0821

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There must be more to the Admin charge than just an extra cost. Perhaps it vanishes into fresh air when their creative accountants work their magic. So many ways to circumvent HMRC if you are clued up.
If its just a charge, surely they can stick another £199 or whatever it is to the price of the car. If your paying X thousand for a car do you say no cos its £199 more than I want to pay.
 
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DSM10000

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I think many wouldn’t pay hidden charges, especially without previously knowing about them,
But if the prospective buyer knew about them they wouldn't be hidden? 🙄

It is a ploy to maintain or more likely ncrease profit and just adds another layer to a process that should be simple and transparent.
It would be interesting to hear from any dealers that operate this business method and also those that do not.
 

Benz17

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Would like to know more about these hidden charges, what are they, have never heard or come across it when purchasing.

Yes have heard of Gap Insurance, Tyre insurance, and such like, but these are optional, buy if you want, or don’t buy.
 

MrGreedy

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It does make sense from the point-of-view of 'rejected' cars.
The conversation would then be about getting the 'sale' price refunded, and the admin part would be protected (they should be entitled to the admin part on a rejection, but it makes the rejection process easier maybe?).
This is assuming it is anything to do with making it clear that there is a non-refundable element, and not some other motive.
 

BoristheBounce

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I can only comment on where my Daughter used to work (Evans Halshaw) the were paid very little for selling a car I think it was a fiver or a tenner, but for every product they sold on the sale, such as finance, GAP insurance etc they would earn more per product, the actual profit for the company on the car sale was negligable, the money is made on the extras, yes like admin charges etc. In addition the compamy get huge bonuses for selling a certain number of cars, so get them at the right time of the month and you could actually get a car for less than their cost price if they need say one car to make their targets.
 

markjay

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It does make sense from the point-of-view of 'rejected' cars.
The conversation would then be about getting the 'sale' price refunded, and the admin part would be protected (they should be entitled to the admin part on a rejection, but it makes the rejection process easier maybe?).
This is assuming it is anything to do with making it clear that there is a non-refundable element, and not some other motive.
This was my guess as well, but then realistically, how many cars are rejected? Very few I would think, compared to the overall number sold.
 

chic0821

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Just clicked on the admin fee icon on Autotrader, here are a couple
Pentland

£250 admin fee​

Includes handling of part exchange cars |Administartion of private number plates|Finance Admin|Provenance check|£50 Fuel in car for collection|

another Pentland dealer, they are not even consistent throughout the group


£199 admin fee​

The £199 admin fee pays toward the preparation of your new car, to make sure you are ready to drive away hassle-free and happy. The admin fee includes: • A full HPI report of the vehicle’s history that we can provide you with ultimate peace of mind. • Full pre-delivery vehicle check to ensure your car is 100% road-ready and safe. • Full valet inside and out – everyone loves that new car smell! • 7 day drive away insurance. • Full part exchange management.

Its a wonder you are not charged to come into the dealership to view the car
S###, maybe they are reading this & I have given them another money making idea
 
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DSM10000

DSM10000

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Just clicked on the admin fee icon on Autotrader, here are a couple
Pentland

£250 admin fee​

Includes handling of part exchange cars |Administartion of private number plates|Finance Admin|Provenance check|£50 Fuel in car for collection|

another Pentland dealer, they are not even consistent throughout the group

£199 admin fee​

The £199 admin fee pays toward the preparation of your new car, to make sure you are ready to drive away hassle-free and happy. The admin fee includes: • A full HPI report of the vehicle’s history that we can provide you with ultimate peace of mind. • Full pre-delivery vehicle check to ensure your car is 100% road-ready and safe. • Full valet inside and out – everyone loves that new car smell! • 7 day drive away insurance. • Full part exchange management.

Its a wonder you are not charged to come into the dealership to view the car
S###, maybe they are reading this & I have given them another money making idea
That cup of lukewarm instant coffee has to be made by someone!

So the "Free" 7 day insurance advertised by many is no longer free or they charge you to arrange it (so not free!)
 

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