Car sales “administration” fees

Laurel16

I have noticed that most new and second hand car dealers now charge an “administration” fee of about £200 or more. In the past the profit from the sale of the car presumably covered administration costs and you would be charged extra for delivery, transfer of road VED etc. I know the change in taxation in 2017 meant that new car prices had to be fully inclusive of delivery etc. Also, now that VED is no longer transferable to a new owner, this is one task second hand car dealers no longer have to undertake and I am intrigued as to what constitutes the rest of the “administrative” fee they charge.

KimJongUn88

Just take the screen price and admin fee as if it were the total price. If this is still more competitive than other dealers what’s the problem?

if you’re till not happy, threaten to walk and if they let you walk so be it.

facade

It is just a way of making the car out to appear cheaper than the competition, then when they have you on site they think you won't simply walk*. There may be an element of accounting and legal tax avoidance as well-I'm not up on business taxation .

Rather like the eBay sellers who charge huge amounts for postage, as this makes their item appear cheaper, and at one time eBay didn't charge a % of the post, only the actual item price.

*Plus, if you do argue the fee, and walk over it, they are probably better off without you as a customer, as no doubt you would be back complaining about every little thing like wheels falling off, engine seizing etc.... 

[Deleted User]

Stuff any dealer trying to add on extra fees. I don't go to ASDA and pay extra hidden small print cost at the checkout.