Dealers and Consumers-The continuing SAGA Part III

[Galantspeedz]

Admin fees are "extras" commission for the sales person. For company is to cover some cost to the vehicle. For me, if the buyer meets my target car price and unwilling to give any admin fee, I would also sell it. Bro no need to walk away when sales person negotiate on admin fees. I am sure companies without collecting admin fee, they may sell you higher price which admin fees are already included in the car purchase. 羊毛出在羊身上

Erm.. but admin fees are usually mentioned only after price is agreed so why should I pay more than the agreed price?

 

It does not matter if original includes or excludes the 羊毛.

[CarsEnthusiast]

Admin fees are "extras" commission for the sales person. For company is to cover some cost to the vehicle. For me, if the buyer meets my target car price and unwilling to give any admin fee, I would also sell it. Bro no need to walk away when sales person negotiate on admin fees. I am sure companies without collecting admin fee, they may sell you higher price which admin fees are already included in the car purchase. 羊毛出在羊身上

 

If I am not mistaken, the Admin fee is usually $500 although it can vary. It is a psychological kind of thingy and most car salesmen know that it can be a bit difficult for them to be upfront about it but I feel it is better to be upfront about it and not try to casually or sneakily bring it up later to avoid misunderstanding and conflict.

[CarsEnthusiast]

I think the main question here is why is there an admin fee need?

 

Instead of selling a car for 30k +500 admin fee, why not just say 30,500 off the bat and be done with it?

 

What is the difference to the dealer if he isn't trying to add in the 500 after the price for the car has been settled?

 

Also, it is not just about the S&P agreement is it? What if we settle the price at 30k verbally, you then come up to the buyer with the S&P and say, "oh, forgot to tell you that there's a 500 admin fee". Is that really fair? Granted, buyer can still walk away at that point.

 

I think the reason why they don't want to tell you upfront is because they don't want you to bargain down the sale price and effectively removed the Admin fee. So whatever is the final price, the Admin Fee is to be treated as a form of a bonus on top of the final price.

 

[Civicfighter]

I think the main question here is why is there an admin fee need?

 

Instead of selling a car for 30k +500 admin fee, why not just say 30,500 off the bat and be done with it?

 

What is the difference to the dealer if he isn't trying to add in the 500 after the price for the car has been settled?

 

Also, it is not just about the S&P agreement is it? What if we settle the price at 30k verbally, you then come up to the buyer with the S&P and say, "oh, forgot to tell you that there's a 500 admin fee". Is that really fair? Granted, buyer can still walk away at that point.

Admin fees is separated out because it's the sales person "extra" commission. If put in together with the car selling price, the sales person will not be able to earn this "extra" income. "Forget" to add in after signing on the sales agreement is not in my dictionary. I will tell my sales person to waive off if that's the case. Must say upfront whatever fees before signing in my earlier post.

[Kusje]

Admin fees is separated out because it's the sales person "extra" commission. If put in together with the car selling price, the sales person will not be able to earn this "extra" income. "Forget" to add in after signing on the sales agreement is not in my dictionary. I will tell my sales person to waive off if that's the case. Must say upfront whatever fees before signing in my earlier post.

 

That's rubbish la.

 

How you want to structure your sales person's compensation has nothing to do with the admin fee. You mean if you sold the same car for 30500 instead of 30000+500, you can't pay the sales person 500 out of that 30500?

 

The only reason I can think of is that the 500 fee is only disclosed to the consumer after the car price is settled but not before the S&P agreement is signed.

[Civicfighter]

I think u have to prepare for the day when most will reject your additional fees. Plus provide value-add such as new oils and fluids plus upfront AA inspection.

 

We consumers will tell as many newbie potential car buyers as possible that this is the new expected behaviour going forward.

 

Here is a case of bare-faced denial and avoidance of the demands of the customer. The demands are reasonable to ensure the quality of the merchandise you offer, yet u keep avoiding the issue.

 

And your rationalisation and justification for the admin fee is very weak. Loan paperwork is forwarded to an agent to compare multiple loans, and transfer of vehicle is online. You collect the deposit through credit card or cheque or cashier order. You do not perform any technical work on the car. You don't change the wipers or bulbs. Even cleaning is left to others.

 

How can you thick-skinned still ask for an outdated 'industry practice'?

Wow.. New Dr Chee is here. Talk like we dealers owe you a living. You pay peanuts and get monkeys job. Do not think that with your money, you demand everything like new. I will ask your kind to get off my shop and buy from others. I believed you give this kind of ignorance or CB-attitude to any car dealers, they will better ignore you. I had mentioned before and did not hide the concept of admin fees.

[CarsEnthusiast]

Looks like this $500 Admin Fee will always be a very sticky issue. By the way, I was told that this Admin Fee is usually split between the company and the salesman but not necessarily on a 50/50 basis unless they have a special arrangement where the saleman get the full amount.

[Weez911]

That's rubbish la.

 

How you want to structure your sales person's compensation has nothing to do with the admin fee. You mean if you sold the same car for 30500 instead of 30000+500, you can't pay the sales person 500 out of that 30500?

 

The only reason I can think of is that the 500 fee is only disclosed to the consumer after the car price is settled but not before the S&P agreement is signed.

Yalor. I will say out of 10 customers, surely there are at least 1 or 2 who will be pressured to pay after agreeing the car price. Not all customers visit MCF for info, and dealers will quote this is industry practice.

[Hamburger]

Yalor. I will say out of 10 customers, surely there are at least 1 or 2 who will be pressured to pay after agreeing the car price. Not all customers visit MCF for info, and dealers will quote this is industry practice.

 

exactly, but of course he who thinks is noble can refute that.

[Weez911]

exactly, but of course he who thinks is noble can refute that.

 

All the dealers come to this forum and give model answers, but practise differently when facing real customers. OK not all, I get that.

 

Anyway we can't force them to change. We can increase the level of awareness to deter such practice as much as we can.

[Kusje]

All the dealers come to this forum and give model answers, but practise differently when facing real customers. OK not all, I get that.

 

Anyway we can't force them to change. We can increase the level of awareness to deter such practice as much as we can.

 

Not fair to say that since we don't deal with them in person.

 

But for me, model ans should at least make sense. So far, 500 admin fee hasn't made sense to me.

[Civicfighter]

That's rubbish la.

 

How you want to structure your sales person's compensation has nothing to do with the admin fee. You mean if you sold the same car for 30500 instead of 30000+500, you can't pay the sales person 500 out of that 30500?

 

The only reason I can think of is that the 500 fee is only disclosed to the consumer after the car price is settled but not before the S&P agreement is signed.

It's different la bro. If the sales person say the car is sold at 30.5k, I will just pay him the car comm. if sell at 30k + 500 adim, I will pay him car comm+ a certain percentage of the 500 he collected. This is how my commission structure I pay it out. Different company have different structure.

[Bacteria83]

I understand the admin fee is extra income for both the company and sales person. Since Civicfighter company is transparent about it I think its fair enough but the practice really not logical.

 

Imagine you purchase a house through an agent, after agent got a cut of his 1% comm still ask you for admin fee cause is a bonus to him.

 

The car salesman already gotten a cut for the transacted price therefore he should do his job, if he can line up any loan deal and the bank pay him a commission is his gain.

 

some still expect the client to give them coffee money of few hundreds dollar when the client managed to source for a better insurance quote (base on my own personal experience). when a person did a very lousy job and still want to charge you extra.

[Imac]

Looks like this $500 Admin Fee will always be a very sticky issue. By the way, I was told that this Admin Fee is usually split between the company and the salesman but not necessarily on a 50/50 basis unless they have a special arrangement where the saleman get the full amount.

Admin fee is only $500 ? I think it is fair & cheap.

 

When my inlaw purchase an 2nd hand Camry few years back, the admin fee is $1000.

 

The dealer said it is company policies.

 

1. Company SOP's admin fee - $500

2. Arrangement for Insurance - $200

3. Arrangement for Bank Loan - $200

4. LTA Transferring Paperwork - $100

 

Total $1000.

[CarsEnthusiast]

Admin fee is only $500 ? I think it is fair & cheap.

 

When my inlaw purchase an 2nd hand Camry few years back, the admin fee is $1000.

 

The dealer said it is company policies.

 

1. Company SOP's admin fee - $500

2. Arrangement for Insurance - $200

3. Arrangement for Bank Loan - $200

4. LTA Transferring Paperwork - $100

 

Total $1000.

 

This is so unfair. They already earned commission for motor insurance and bank loan and still got the cheek to ask Admin Fees for Insurance and Bank Loan.

[Civicfighter]

Admin fee is only $500 ? I think it is fair & cheap.

 

When my inlaw purchase an 2nd hand Camry few years back, the admin fee is $1000.

 

The dealer said it is company policies.

 

1. Company SOP's admin fee - $500

2. Arrangement for Insurance - $200

3. Arrangement for Bank Loan - $200

4. LTA Transferring Paperwork - $100

 

Total $1000.

Bro your in-law met with a hungry salesman who is very creative too. For me to collect admin fees, I will not beat around the bush. I will just tell the customer upfront "there will be a $1k admin fee" on top of any agreed price. I find it ok if your in-law is told before signing the sales agreement, that means he had agreed. If he is told after signing the sales agreement, he can stand up and walk off. I had make known to all my sales person if they wanted to make the "extra" commission, must say upfront to the customer. Say upfront will not cost them a piece of meat lost.

[Galantspeedz]

Actually as long as everything is said up front during nego of price... I think is fine

 

It is after all the total price that matters

 

But i still pay 30500 than 30000 + 500 admin fee...

[Hamburger]

What is it so hard to comprehend that admin fee is for suckers?

 

Those who felll prey to it deserve it all? And lucky for those who did not pay?

 

Double standard......