Overhaulin'

New car prices and add ons, are they legal?

After agreeing the trade in and price of a new little car I found an additional Administration Fee added on, the salesman said it was a Government Requirement [ It was £175 & this is a large well known car dealership] Is this correct? Or am I being cheated?

Public Comments

1. No This is not right the administration fee he MAY be refering to is the REGISTRATION fee, for the numbers plates etc, if its a new car then yes this will apply, but if its second hand then this is illegal
2. Without the full details of what the fee is for, hard to say, However I would talk to the sales manager and inform him if this add on fee you are being told you need to pay is not absorbed by the dealer you will walk away and find another dealer and car. They will waiver the fee for the sale, however ensure they do not put in on something else like service cost or agreed extras.
3. The DVLA charge a £55 "first registration fee" on brand new cars on top of the road tax. It is uncommon for dealers to charge an admin fee on new cars, but they often do on used cars. This is to cover taxation, HPI checks, mileage checks etc. Nothing illegal in this providing the amount is displayed clearly on any advertising and point of sale materials.
4. Did you take a loan out through the car dealership? If so, this could also be a loan origination fee or a loan application fee. If you did not take a loan through the car dealership then this is either the registration or the title fee.