Admin fees - are they justified?
Some dealers are adding an extra fee to the purchase price of their vehicles.
At least one of the car supermarkets add an extra £96 as a pre-delivery fee - apparently a "preparation" cost. When I asked for a more specific cost breakdown, I was told that the car would be valeted before collection. Which, of course, they do anyway when they put the car up for sale.
A Land Rover main dealer, (Sturgess), add £72 for "admin". This was for the "paperwork for the sale" including the HPI check. (Even to a private individual, Experian only charge a few pounds for this.) Hunters, another Land Rover franchise, have no such fee and I subsequently bought my car from them.
A cynic may say that these insidious charges, although unjustified, are a nice little earner - what's your view?
At least one of the car supermarkets add an extra £96 as a pre-delivery fee - apparently a "preparation" cost. When I asked for a more specific cost breakdown, I was told that the car would be valeted before collection. Which, of course, they do anyway when they put the car up for sale.
A Land Rover main dealer, (Sturgess), add £72 for "admin". This was for the "paperwork for the sale" including the HPI check. (Even to a private individual, Experian only charge a few pounds for this.) Hunters, another Land Rover franchise, have no such fee and I subsequently bought my car from them.
A cynic may say that these insidious charges, although unjustified, are a nice little earner - what's your view?
Asked on 15 June 2015 by Steve Mass
Answered by
Honest John
I hate this on new cars and think it's disgraceful. BMW does it on BMW and MINI models. Toyota does it. The only price of any relevance and the only price that should ever be quoter is the final, on the road price. If they add anything to the quoted list price, just walk out. For used cars, the fees are much less: about 15% of what BMW charges on a new car, and they have been around a long time, so I don't resent them as badly. Just add them to whatever price the dealer is advertising the car for then negotiate the final price you have to pay down from that.
Tags:
dealers
admin fees
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