Car finance administration fee.

_Annoyingmonkey

I've just had my car finance statement through for this year and there are 2 admin fees on it, 1 for £199 and 1 for £149. I've contacted the company and asked them about the work involved to try and understand why these costs are so high, waiting to hear back. Anyone else had anything like this? I'm with Motonovo finance.

foxy-stoat

If you check on your original credit agreement that you signed up to, the administration fees will be stated on there.

I do not believe they need to justify the costs as you would of agreed to them when you signed up.

The only think I would query is that if there is any interest being added to the fees, but that will also be stated on the agreement.

k3lvc

_Annoyingmonkey wrote: »

I've just had my car finance statement through for this year and there are 2 admin fees on it, 1 for £199 and 1 for £149. I've contacted the company and asked them about the work involved to try and understand why these costs are so high, waiting to hear back. Anyone else had anything like this? I'm with Motonovo finance.

Given this and your other post https://forums.moneysavingexpert.com/discussion/5491036 there appears to be a common theme - read the T&C's before you sign things - so far not doing so has apparently cost you £948

forgotmyname

Just tell them you work for free so why do they need to charge an admin fee, do they not have workers that do not want paying.

And all their equipment and offices etc cost nothing to run?

dannyrst

forgotmyname wrote: »

Just tell them you work for free so why do they need to charge an admin fee, do they not have workers that do not want paying.

And all their equipment and offices etc cost nothing to run?

Do you pay an admin fee when you go to Tesco?

They must not have any costs according to your logic...

bigjl

dannyrst wrote: »

Do you pay an admin fee when you go to Tesco?

They must not have any costs according to your logic...

I thought the Motonovo where a sub prime lender?

Could the fee be due to missed or late payments?

If they are in the contract then they are allowed to charge them

Edwood_Woodwood

foxy-stoat wrote: »

If you check on your original credit agreement that you signed up to, the administration fees will be stated on there.

I do not believe they need to justify the costs as you would of agreed to them when you signed up.

Some contract terms can be unenforceable or unfair even if you agreed to them when signing up.

If an admin fee is claimed to cost the company £199 then one signs the contract believing that to be the cost.

However, if challenged, the company were then unable to quantify a true cost of £199 for that fee then there is a valid dispute.

The true cost cannot be, say, £19, and £180 is pure profit, because £199 is what has been described as the admin fee.

forgotmyname

dannyrst wrote: »

Do you pay an admin fee when you go to Tesco?

They must not have any costs according to your logic...

They do have costs though the same as the company in the OPs post.

Yes Tesco do have an admin fee, It covers the costs of the electricity and water and staff wages etc. They just dont itemise it on your shopping receipt. But you still pay for it.

k3lvc

Edwood_Woodwood wrote: »

Some contract terms can be unenforceable or unfair even if you agreed to them when signing up.

If an admin fee is claimed to cost the company £199 then one signs the contract believing that to be the cost.

However, if challenged, the company were then unable to quantify a true cost of £199 for that fee then there is a valid dispute.

The true cost cannot be, say, £19, and £180 is pure profit, because £199 is what has been described as the admin fee.

Can you share your source for this statement please ? Are you suggesting that we should all challenge everything charged to us and only pay if we're given a full breakdown

poppasmurf_bewdley

My first admin fee - then called an 'option to buy' was £2 when I bought my first car, in 1968.

But there again, the brand new Ford Zephyr 6 deluxe cost, I think, £950 on the road.

Edwood_Woodwood

k3lvc wrote: »

Can you share your source for this statement please ? Are you suggesting that we should all challenge everything charged to us and only pay if we're given a full breakdown

No, I am saying exactly what I stated.

The subject is about an admin charge.

How you can then confuse this with "everything charged to you" is quite bizarre.

The source is the law. The law of contract.

It is a well known concept, obviously lost on you however, that one is able to raise a dispute and to expect an explanation.

The OP has purchased car finance, a credit agreement regulated by the Consumer Credit Act.

Within that contract is an admin charge of £199 and, seemingly, another of £149.

The OP is fully entitled to ask the creditor to explain how these sums were arrived at.

I'm unsure as to why you find this to be astonishing.

Ever heard of the mortgage exit fees scandal?

Where lenders would charge something like £300 for this administration role yet the true cost would probably have been about £30.

Late credit card fees?

Did it really cost the lender £35 to administer a late payment?

No, which is why most now charge about £12.

Simply, if the admin fees charged to the OP cannot be shown as a true cost of the admin then he has a case.