Dealer 'admin fee'

snowcat53

Just bought a used car from a Main Dealer (Hyundai). Among the extras was an 'Admin fee' of £65. I queried this but was told it was a requirement and would have to appear on the agreement, even if we agreed to knock down other elements.

Even though car dealers seem to be masters of adding extras to the price this one seems dubious. Wonder why every shop doesn't just add an admin fee to the ticket price, to be added on at the checkout?

Anyone have any insight into why this is there and 'required'?

Stooby2

It's there and required to make them a profit. The last time I bought from a dealer he tried the same, I refused to pay it - what other retailer charges you to buy their goods? Eventually he put 6 months tax on in lieu of it as I was prepared to walk away.

snowcat53

Ticket agencies do it all the time too, even if you collect the ticket or print it out yourself.

Guess it's a fee for the great privilege of listening the salesman's spiel.

motorguy

snowcat53 wrote: »

Just bought a used car from a Main Dealer (Hyundai). Among the extras was an 'Admin fee' of £65. I queried this but was told it was a requirement and would have to appear on the agreement, even if we agreed to knock down other elements.

Even though car dealers seem to be masters of adding extras to the price this one seems dubious. Wonder why every shop doesn't just add an admin fee to the ticket price, to be added on at the checkout?

Anyone have any insight into why this is there and 'required'?

By agreement do you mean finance agreement?

If so its the fee the finance company charge for administration in setting up the loan.

ukjoel

I had this with Evans Halshaw although I think most dealers try it now. Evans Halshaw wanted £100 so you got off lightly.

Its supposed to cover the cost of the PDI on the car your buying (yes - I did type that correctly) and I think £10 of fuel they said.

Its not mentioned in the advert online so the minute I mentioned trading standards and advertising standards authority the charge disappeared.

Dont pay it, and ask for your deposit back. The charge will be dropped.

One of my friends called it a gullibility tax.

snowcat53

Motorguy - no not finance fee, I'm a cash buyer.

I knocked them down several hundred more from what I felt was already a very good price so I'm not concerned about arguing further now. But certainly was shocked at the cost of the extras (Gap insurance, paint protection, cosmetic insurance and this admin fee) - over a thousand extra. That's how they make their profits!

dacouch

snowcat53 wrote: »

Motorguy - no not finance fee, I'm a cash buyer.

I knocked them down several hundred more from what I felt was already a very good price so I'm not concerned about arguing further now. But certainly was shocked at the cost of the extras (Gap insurance, paint protection, cosmetic insurance and this admin fee) - over a thousand extra. That's how they make their profits!

You can buy GAP Insurance for about 60% cheaper than the dealer is offering by buying online and it's normally better cover

spacey2012

The whole admin fee scam is just an idiot tax.
Every firm is at it, just add on a few extra quid and the idiots will just pay it to have an easy life.

As a consumer you do have a choice, most just pay to be done, one of those things, others walk out and shop elsewhere.

agrinnall

ukjoel wrote: »

Its supposed to cover the cost of the PDI on the car your buying (yes - I did type that correctly) and I think £10 of fuel they said.

Oh no you didn't

27col

ukjoel wrote: »

Its supposed to cover the cost of the PDI on the car your buying (yes - I did type that correctly) and I think £10 of fuel they said.


One of my friends called it a gullibility tax.

"You're buying" is "short for you are buying." So in fact you did not type it correctly
But so many people get it wrong that I have almost given up pointing it out.

motorguy

snowcat53 wrote: »

Motorguy - no not finance fee, I'm a cash buyer.

I knocked them down several hundred more from what I felt was already a very good price so I'm not concerned about arguing further now. But certainly was shocked at the cost of the extras (Gap insurance, paint protection, cosmetic insurance and this admin fee) - over a thousand extra. That's how they make their profits!

Yes, literally, all the extras are where they make their money these days - theres little profit in a straight sale cash deal.