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

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Haha, everyone loves that new car smell, can a valet give a new car smell, 😆
 
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

It is just beyond me why that amount of money can't be absorbed from the profit margin. If my memory is correct from my Car Retail days there should be something between 15% and 20% mark up in a vehicle sale, £199 and £250 is a pretty small amount of cost to absorb. Out of principle I just would not knowingly pay it.!! :wallbash:
 
It is just beyond me why that amount of money can't be absorbed from the profit margin. If my memory is correct from my Car Retail days there should be something between 15% and 20% mark up in a vehicle sale, £199 and £250 is a pretty small amount of cost to absorb. Out of principle I just would not knowingly pay it.!! :wallbash:
No doubt it has been absorbed for a long while, but to me it seems they are now jumping on the bandwagon, and following what the car supermarket have been doing, just so that they can increase their profits.
 
It is just beyond me why that amount of money can't be absorbed from the profit margin. If my memory is correct from my Car Retail days there should be something between 15% and 20% mark up in a vehicle sale, £199 and £250 is a pretty small amount of cost to absorb. Out of principle I just would not knowingly pay it.!! :wallbash:
Don't think that's the case in this day and Age AJ, I remember when you could get a decent discount if you walked in with a wad of cash, it makes no difference now, they want you to take out finance so they can get a cut margins are so low. I'm assuming that was a while ago when you were in the trade?
 
Don't think that's the case in this day and Age AJ, I remember when you could get a decent discount if you walked in with a wad of cash, it makes no difference now, they want you to take out finance so they can get a cut margins are so low. I'm assuming that was a while ago when you were in the trade?

Yes, spent all of my working life in the Motor industry but only 60'sand 70's in the retail sector :rolleyes:
 
Just bought some rail tickets - get to the pay page and £1.55 booking fee added on.
 
Don't think that's the case in this day and Age AJ, I remember when you could get a decent discount if you walked in with a wad of cash, it makes no difference now, they want you to take out finance so they can get a cut margins are so low. I'm assuming that was a while ago when you were in the trade?

Some second hand car dealers charge a 'cash handling fee' if you pay in notes - to cover the extra cost and work in terns of physical security and depositing the cash onto their bank account at the end of each day etc.
 
When Pay-and-Display was first introduced... there was a additional 'admin fee' for using the service, in spite if the fact that the council no longer needed to employ people to go around daily collecting the coins from the parking meters and taking them to the bank.
 
Some second hand car dealers charge a 'cash handling fee' if you pay in notes - to cover the extra cost and work in terns of physical security and depositing the cash onto their bank account at the end of each day etc.

When I was Fleet Disposals Manager with a major Vehicle Contract Hire company traders used to come in and want to pay cash. I used to refuse it telling them that you have got to count it, I have got to count it, our Accountant has got to count it and then the bank is going charge us to count it, so no thanks. Bankers draft only or if it is a cheque you are going to have to wait three days. :rolleyes:
 
I wonder what would happen if, after completing a sale and giving them the keys of your part exchange car, you then charged THEM an administration fee for preparing your part exchange, valeting it etc? 🤔
 
Shall I start charging an admin fee when my new firm starts trading?

If you think you can get away with it... go for it.

In my business, I wouldn't, so I don't.
 
A lead roofing company?

No, I'm not good with ladders or working at heights.... :D

IT support. The most I ever climbed was to fit WiFi access points above suspended ceilings....
 
No, I'm not good with ladders or working at heights.... :D

IT support. The most I ever climbed was to fit WiFi access points above suspended ceilings....
I used to climb a 147ft high mast at HMS Ganges at 15 in the Navy - right to the button!! Have trouble with stepladders nowadays. How the mighty have fallen! (See what I did there...)

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Just another profit centre, as DSM10000 has said, there is no way I would pay it, I would just walk away. I wonder if you did walk would they waver the Admin fee to retain the deal ? :rolleyes:
Hi , really depends what money they want for the car.
 

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