Scrappage - Anyone else having to pay extra for this?

blue_haddock

With regards to the charge for using a credit card - this is normal for pretty much all car dealers. Whenever you use your credit card the retailer get charged a percentage as a fee. Now when paying for your weekly shop at tesco this is a fairly minimal amount and factored into the supermarkets overheads however a 2% fee on top of a £10k adds up to quite a bit which is why they pass the cost onto yourself.

There are many other ways to pay such as a debit card, cash, bank transfer or a draft. There may be a charge for the transfer or draft but not as much as for the credit card transaction. Also not all dealers like handling large amounts of cash any more.

skipsmum

just bought a kia on scrappage..no £95 fee, but did have to pay 2% on the deposit cos i used my credit card

flea72

honestly, i dont know of any dealer that charges admin fees, or more the point, blatantly advertises the fact they do

most dealers would factor this into the price of the car, however, i suppose with scrappage this if a bit harder to do, as the price is manufacturer dictated, so the actual dealer has no leaway on what they can charge (other than downwards)

tbh, if they are only charging this fee on scrappage deals, it does seem a bit odd. ok, there is a tad more paperwork with the scrappage scheme, and a few more hoops to jump through, but not £95 worth

F

vikingaero

blue_haddock wrote: »

With regards to the charge for using a credit card - this is normal for pretty much all car dealers. Whenever you use your credit card the retailer get charged a percentage as a fee. Now when paying for your weekly shop at tesco this is a fairly minimal amount and factored into the supermarkets overheads however a 2% fee on top of a £10k adds up to quite a bit which is why they pass the cost onto yourself.

There are many other ways to pay such as a debit card, cash, bank transfer or a draft. There may be a charge for the transfer or draft but not as much as for the credit card transaction. Also not all dealers like handling large amounts of cash any more.

The other point to make is that a 2% credit card fee on a £100 shop in Tescos is £2 (less any volume that Mr T receive). The gross profit on a shop may be in the region of 50-400%.

A £10k credit card transaction on a car is £200. And the dealer may only be working on a 5-10% margin.

[Deleted User]

tobit wrote: »

Hi again. you're all being so helpful - thank you:A. The car I'm buying is a Hyundai i10. the dealer told me, when I paid the deposit in November, that I would have to pay the increased VAT come January/February - fair enough, I thought.

I've just checked my agreement (I signed it more than two months ago, so I need to read it again) and there is no mention at all in the small print about an excess for paying the balance by credit card. In addition, I paid the deposit by credit card and there was no quibble at the time, or an excess, or any mention of an excess.

I've also just nipped out to speak to a chum about her new car - bought recently via scrappage. Not only did she have no scrappage fee, she has one year's free credit.

Food for thought here ...

Hi,
I bought a Hyundai i10 today through the scrappage scheme and when I was paying the deposit I was told that there would be a 2% credit card charge, no charge for using a debit card.
When the salesman went to double check he came back and said it was only on payments over £500 that the 2% charge comes in so I paid £400 deposit without a charge. I will be paying the balance on receipt of the car by debit card.

I hope this helps
P
X

tobit

I emailed Hyundai, as Lorian advised (thank you, Lorian ) and, indeed, Hyundai replied within a day saying 'it is their policy that they (the dealers) add an administrative charge to all contract of sales.' So, I guess that adding a scrappage admin fee is acceptable. At least my dealer is up-front about it.

I'm hoping to collect my new car within a few days - so, thank you everyone for your very helpful comments.

BlaEm

I just bought a Toyota through scrappage, there was no 'hidden' £95 fee - I've been given the full £2,000 off (plus an extra £500 from haggling; the only way I've paid an admin fee as well is if they actually gave me an extra £595 off!).

You can normally pay up to £1,000 on CC without getting charged - however, I know someone who bought a 2nd hand car with partial payment on CC and got stung for 2% on the entire cost. Check what they're policy is if they do still want to charge you.

Inactive

tobit wrote: »

I emailed Hyundai, as Lorian advised (thank you, Lorian ) and, indeed, Hyundai replied within a day saying 'it is their policy that they (the dealers) add an administrative charge to all contract of sales.' So, I guess that adding a scrappage admin fee is acceptable. At least my dealer is up-front about it.

I'm hoping to collect my new car within a few days - so, thank you everyone for your very helpful comments.

I would still challenge that " Admin Fee " with those responsible for administering the Scrappage Scheme, that seems very naughty to me.

It seems that Hyundai are only giving £905 towards their share of the scheme.