admin fee

[Troy5925]

Is It common practice now to ad admin fees when buying a used lotus from a lotus dealer?

Its not even a small fee either at £150

[Bibs]

Garages are free to charge as they wish, and sadly it's common practice now for any garage to add an admin fee. You can always tell them you're not buying the car if they won't waive it and hope for a phone call shortly after but there's always a chance someone else who is willing to cought up might call before this! Just think of the whole price as exactly that though and forget it's an admin fee. It's always been included in the price before along with VAT/tax/car mats etc. None of it was ever free, it was always factored into the price.

[C8RKH]

The dealer is doing Admin work for you. Do you work for free @Troy5925?

[Troy5925]

What would class as admin work?

Not sure this is much admin work to be done as a salesman

I have never come across this fee before with all my previous cars

I agree with bibs why don't they just factor it in the price of the cars and not mention it at all

Registrating a new owner on the DVLA I wouldn't class as admin work that justifys £150

Edited May 23, 2023 by Troy5925

[Escape]

Don't underestimate the paperwork and time needed when you buy or order something. I have a small business myself and have become aware of the time I spend looking up and verifying part numbers, finding a seller, then ordering and arranging delivery. So it's only normal there is a fee for that.

I do agree it would be better to just factor it into the dealer's margin, instead of adding a fee. Nobody likes to see extra costs, even if we know they are there.

[Bravo73]

13 minutes ago, Escape said:

I do agree it would be better to just factor it into the dealer's margin, instead of adding a fee. 

It might come down to slightly additional tax for the dealer. Any additional margin (or profit) might be taxed whilst an ‘admin fee’ is a cost so isn’t. Maybe? 🤷‍♂️

[Escape]

Might well be something like that.

[C8RKH]

10 hours ago, Troy5925 said:

Not sure this is much admin work to be done as a salesman

Hmmm, so you're not sure so haven't a clue re what is involved?

Not trying to be an arse but your argument of why not just give "one price" just means the Admin fee will be hidden in that price. You'll still be paying it but oblivious to the fact. 

The dealer is doing Admin and needs to make a living/profit too.

Personally, I think Lotus new "sales model" is utter shite. But nowt I do or say will change it. I've already fallen out of love with Lotus 2.0.

Just pay the bill, get your car, drive and enjoy it. That Admin fee will be forgotten after the first 10 miles.

[Barrykearley]

10 hours ago, Troy5925 said:

I have never come across this fee before with all my previous cars

You’ve never sold a car to webuyanycar or bought a car from any of the big car supermarkets then. This is becoming a very common thing now.

[Chillidoggy]

In this day and age, everyone bitches and moans about hidden costs and lack of transparency, and expects the costs to be separately listed. On the flip side, if it's an unavoidable expense (which it looks like it is), and it was wrapped up in one price, then there'd be an outcry about being deceived. It also occurs to me that there are tax implications for the supplier.

[Troy5925]

Guys thanks for all your input

It's its always best best to ask these questions on platforms like this

[C8RKH]

Lol, you ask, people respond. Often not agreeing, sometimes contrary, occasionally sarcastic but always well intentioned - even when the intention is to take the piss! 👍

[Bazza 907]

This reminds me of..

https://youtu.be/9hFZOWHGb6o

 

[Kimbers]

On 24/05/2023 at 07:55, Barrykearley said:

You’ve never sold a car to webuyanycar or bought a car from any of the big car supermarkets then. This is becoming a very common thing now.

Yeah and their Admin fee's make £150 look like a drop in the ocean. 

So if you aren't sure about what "Admin" a dealer does to get your car on the road.

Paperwork for the sale includes legal documentation that the Govt and monitoring authorities require, plus whatever the Dealer has to do for the DVLA, AFRL and even for whatever system they use such as Kalmazoo etc. Then there is dealer required Documentation for Accounts and internal checks. Then there is Admin in prep'ing the car to ensure everything is done for you to collect. I won't go into how many check sheets need to be done. 1 for Admin, 1 for Salesman, one for Sales Manager to oversee the other 2 etc.

Then there is Finance Paperwork, if you don't want Finance there is paperwork to say you don't want finance and that it has been offered to you as a requirement. Then there is Insurance Documentation and additional options such as paint treatments and GAP insurances. Again if you don't want these the Salesman has to get you to sign to say it was offered, not for legal reasons but because his boss will sack him if he doesn't "sell" which is his job!

Then there is admin for the handover, final check lists, Inspection by the Saleman to make sure its perfect (he has to sign to say he's done it so it's on his head if you find an issue). Finally on collection the Saleman has to do another check on your used car, ensure its the same as when he last inspected it when doing the deal. Then Admin has to collate all that info, send the relevant forms to the relevant people to scan in so Govt and insurance/finance authorities can ensure its been done to their satisfaction and updating the computer systems that communicate with others including the DVLA to ensure you don't get pulled for having no insurance or tax.

Now some of this has been automated in some bigger companies but instead of a form the Salesman/Admin/Manager has to do it all online and get you to click your esignature. The process is the same and time consuming!

The other point was, in the old days we used to hide the admin cost in the price but these days you aren't allowed to. Everything has to be above board and costs seperated so you can see what you are paying for.

I think one of he only industries involved in sales to the public where you have more Admin to do, is the Insurance IFA industry, but again, Car dealers need specialists because they sell those products as well!

[RichardC]

I have no problem being given an itemised bill for the price of a car, but the price advertised on the windscreen sticker should be the price that you pay (optional extras excluded).

[C8RKH]

I agree with that @RichardC

[Bibs]

How did you get on @Troy5925, did you buy something in the end, with or without the fee? 

[Troy5925]

Hi bibs

 

Yes I have bought a 250cup and should be picking it up on Saturday and the fee I did have to pay up

[Bibs]

Nice! Will be very different to the Evora!!

Feel free to pop some pics up mate! 

[Troy5925]

I will and looking forward to getting back out and doing some events and trackdays

 

I will probably bump into you at an event soon

[Troy5925]

Edited June 17, 2023 by Troy5925

[Bibs]

Very, very nice mate. Congratulations