All cars - Administration charges - why are they allowed?

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Fri 26 Apr 2019 11:47
All cars - Administration charges - why are they allowed? - trebor1
Im aware that quite a few car sales garages are adding circa £200 administration charges to their cars both old and new. Now obviously with haggling ( i said id walk and find a dealer who does not charge extra rather than pay) you can get it removed. However how many people are too timid to just pay up adding a unnecessary chunk to changing cars?

Im surprised its a legally allowed charge with government clamping down on these types of hidden charged, the garage after all are already making hundreds of pounds of profit on the deal.


Any other views?
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Fri 26 Apr 2019 12:47
All cars - Administration charges - why are they allowed? - skidpan

Does it really matter how the final price is made up providing the buyer is happy with the deal.

If the buyer is stupid enough to not look at the paperwork then its their own problem.

When we bought the Puma many years ago there was a clear sign stating that a £50 "preparation" fee would be added to all deals. Since the dealer was over £3000 less than our local Ford emporium it did not matter at all did it.

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Fri 26 Apr 2019 13:52
All cars - Administration charges - why are they allowed? - Gibbo_Wirral

I remember going to look at a car at a dealers and they asked how I was going to pay.

I said that I would get a loan from Tesco bank and pay cash.

They asked what I was paying a month and they guaranteed to beat it.

They did. By a quid a month, so £36 over three years.

BUT, looking at the small print of the paperwork there was a fee for setting up the finance - £99, and a fee for closing the finance at the end, another £99.

And they wouldn't let me take the paperwork out of the building unless I signed it.

Edited by Gibbo_Wirral on 26/04/2019 at 13:52

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Fri 26 Apr 2019 14:18
All cars - Administration charges - why are they allowed? - nick62

And they wouldn't let me take the paperwork out of the building unless I signed it.

I stand to be corrected, but AFAIK, you have much better leeway to cancel if you sign any finance agreement AWAY from the showroom?

The first new car I ever bought (a 306 in 1996 - a great car), was 50% deposit and 50% at 0% over 24 months, BUT I had to sign the paperwork in the dealers showroom, (which was a 150+ mile round trip). Fortunately, I was working in the area at the time, so it didn't cause me any problems.

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Fri 26 Apr 2019 14:09
All cars - Administration charges - why are they allowed? - Snakey

They're charge them if they can get away with it I suppose! I found my last car and as it was a fairly rare spec I was keen to buy, I got the part ex price to what I wanted but they would not budge on the £99 fee. So I got up to leave, and the salesman basically said, 'but its only £99', to which I replied 'then remove it and I'll buy it'

After the usual 'manager' discussion the charge was removed, and I bought the car.

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Fri 26 Apr 2019 16:53
All cars - Administration charges - why are they allowed? - James2018

I wonder what dealers that play these tricks will be like when there are warranty problems with the car?

Car refuses to start under warranty - the garage will fix it but needs a £300 diagnostic fee!

Mrs' car, pre-reg at 2/3 of the new price at £10k (was £15k) and 1 mile on the clock went in for its first MOT and service and the auxiliary belt needed replacing.

Its always been a cost item (wear and tear) on company cars that I have had. The local dealer who didn't do silly things with prices, did it for free but was embarrassed that they didn't have one in stock so we had to go back a second day.

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Fri 26 Apr 2019 17:54
All cars - Administration charges - why are they allowed? - concrete

As far as I am aware(maybe Bromptonaut can advise) that it is illegal or renders the agreement void if it's taken away from the premises where it originated. Also it must be signed and witnessed in the dealership in the presence of all concerned.

I remember years ago when youngest daughter wanted to buy a car. The dealership had seen her coming and offered her a very poor deal over 5 years for an overpriced Clio. All she could see was the £15 or so weekly payment, which she could afford. The deal was really crap and they gave the paperwork to her for me to sign as a guarantor. I checked the legal situation and telephoned the dealer. The salesman said I would be in trouble if I cancelled because he had an agreement with my daughter. He was a bit shocked when I asked him to put his sales manager on the line. the sales manager reiterated the same line until I mentioned that the agreement he alluded to was in fact in my possession at my home. Furthermore I intended to call Trading Standards to investigate the situation. Queue for mucho back pedalling and grovelling about it all being a misunderstanding. I let him sweat for a couple of days before telling him I would destroy or return the paperwork in return for a huge bunch of flowers for my daughter. He readily agreed.

A lesson for us all there concerning certain sections of the motor trade.

Cheers Concrete

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Fri 26 Apr 2019 19:32
All cars - Administration charges - why are they allowed? - RT

As far as I am aware(maybe Bromptonaut can advise) that it is illegal or renders the agreement void if it's taken away from the premises where it originated. Also it must be signed and witnessed in the dealership in the presence of all concerned.

I remember years ago when youngest daughter wanted to buy a car. The dealership had seen her coming and offered her a very poor deal over 5 years for an overpriced Clio. All she could see was the £15 or so weekly payment, which she could afford. The deal was really crap and they gave the paperwork to her for me to sign as a guarantor. I checked the legal situation and telephoned the dealer. The salesman said I would be in trouble if I cancelled because he had an agreement with my daughter. He was a bit shocked when I asked him to put his sales manager on the line. the sales manager reiterated the same line until I mentioned that the agreement he alluded to was in fact in my possession at my home. Furthermore I intended to call Trading Standards to investigate the situation. Queue for mucho back pedalling and grovelling about it all being a misunderstanding. I let him sweat for a couple of days before telling him I would destroy or return the paperwork in return for a huge bunch of flowers for my daughter. He readily agreed.

A lesson for us all there concerning certain sections of the motor trade.

Cheers Concrete

Isn't the issue that it would then fall under the Distance Selling Regulations which gives the consumer more rights to cancel the agreement during a "cooling-off" period - something traders don't want.

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Sat 27 Apr 2019 17:39
All cars - Administration charges - why are they allowed? - concrete

Good point RT. This was back in 1998 so I can't remember what regulations applied then. I remember checking with a good friend who was in vehicle management and he told me about the paperwork not valid if not signed and witnessed at the selling dealership. That is all I remember.

The whole idea of an 'admin ' fee is anathema to me, the price is the price. All dealer costs should be included in the selling price. It just smacks of smugness, similar to O'Leary at Ryanair. The 'extras' after the headline flight price are galling. An 'admin' fee on each booking both out and return even when all booked and paid for in one transaction. It just says 'I am picking your pocket and there is nowt you can do about it'. Even though the whole price is competitive it is the way it is done. Much prefer to be an up front cost, all in.

Cheers Concrete

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Fri 26 Apr 2019 21:02
All cars - Administration charges - why are they allowed? - Bromptonaut

As far as I am aware(maybe Bromptonaut can advise) that it is illegal or renders the agreement void if it's taken away from the premises where it originated. Also it must be signed and witnessed in the dealership in the presence of all concerned.

Not stuff I know off the top of my head but I think RT is on right lines. Will check it our when I've got a minute.

When I worked for the Court of Protection and we needed to sign agreements for Motability cars on behalf of those under court's jurisdiction it had to be done on their premises by Southwark Bridge. On a decent day it was a nice 40 minute ride through the city and back to Lincoln's Inn on the eponymous folding bike.

I even got paid 20p/mile to do it.

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Fri 26 Apr 2019 21:59
All cars - Administration charges - why are they allowed? - Smileyman

these administration charges are a bane for all except those who levy them ... and are certainly NOT limited to the retail car market. For instance, I'm in the process of changing the photocopier in the office, the finance deal comes with an opening admin charge, and if I'm very lucky an additional annual charge for something or other ... so they are very easy to anticipate and to factor into the equation when costing a purchase. So, should they be banned, well it's not important, what matters is that there is an upfront statement that they exist and there is no surprise when comes to making payments.

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Fri 26 Apr 2019 23:37
All cars - Administration charges - why are they allowed? - SLO76
They’ll try their luck, if you’re daft enough to pay it they’ll lap it up.
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Sat 27 Apr 2019 11:00
All cars - Administration charges - why are they allowed? - oldroverboy.
They’ll try their luck, if you’re daft enough to pay it they’ll lap it up.

When I bought the MG ZS last November, the dealer had an admin fee and a fuelling fee on the invoice.

Quickly deleted when I refused to pay, especially as I had negotiated a full tank of fuel in the deal.

I have found over the years that getting up to leave works...

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Sat 27 Apr 2019 11:00
All cars - Administration charges - why are they allowed? - Big John

What happened to the "on the road price"? - Is this a thing of the past?

I know the dealers do this - I had this sprung on me when I bought my Superb! but I thought if you have responded to an advertised price then this practice contravenes the Consumer Protection from Unfair Trading Regulations 2008:-

https://www.businesscompanion.info/en/quick-guides/goods/used-car-sales

Edited by Big John on 27/04/2019 at 11:22

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Sat 27 Apr 2019 15:12
All cars - Administration charges - why are they allowed? - skidpan

What happened to the "on the road price"?

When we bought dads Micra it was shown on the invoice at the proper manufacturers OTR price but they had way over allowed on his PX to get a deal.

On collection I spotted that there was only 6 months tax on the car but I knew the the OTR price included 12 months. The salesman immediately blamed the girls in the office and said he would send a cheque for the difference.

Weeks went past with regular phone calls saying that the cheque requisition had to be signed by the dealer principal, then sent to HQ in Bradford which all took time. Eventually when I rang the salesman was on leave and by pure chance the dealer principal actually answered the phone. Said he knew nothing about it but would sort immediately.

Cheque came within 2 days.

Probably standard company practice. If they made an extra £60 or so on every sale it adds up over a year. How many buyers know what they should be getting and actually complain like I did.

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Sun 28 Apr 2019 00:10
All cars - Administration charges - why are they allowed? - Avant

Good point. Now of course much more difficult to spot without a tax disc. Some buyers may not know until they get a reminder from the DVLA in six months' time.

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Sun 28 Apr 2019 10:45
All cars - Administration charges - why are they allowed? - barney100

I've had that, I just politely told the guy I wouldn't pay any admin charges and would look elsewhere. They absorbed the charges.

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