Dealers and Consumers-The continuing SAGA Part III

[JCSL]

Paying "Admin Fee" is always a sticky issue.

 

There are instances some dont charge.

 

I dont know how others practise. I only charge admin fee when;

1. Loan Mark Ups (Inflated Figures)

2. Completely No Loans (in cases where loans are available for 2yrs and above)

 

Just for your consumer info sake. For loans less than a year some finance collect admin fee, Hong Leong charges 300 for loan less than 1 year tenure, Century Tokyo charges ranging 300-500 for loans less than 10K and/or less than 1 year tenure. UOB charges 500 for loans less than 30K for corporate borrowers. Maybank charges 200 for loan less than 15K or less than 1 year tenure.

 

I would say there are dealers who are upfront with the fees and some wait til on day of handover and collecting balance and catch buyers off guard.

 

If buyers think its not reasonable, just negotiate and if buyer dont feel its right, move on.

[Hamburger]

Paying "Admin Fee" is always a sticky issue.

 

There are instances some dont charge.

 

I dont know how others practise. I only charge admin fee when;

1. Loan Mark Ups (Inflated Figures)

2. Completely No Loans (in cases where loans are available for 2yrs and above)

 

Just for your consumer info sake. For loans less than a year some finance collect admin fee, Hong Leong charges 300 for loan less than 1 year tenure, Century Tokyo charges ranging 300-500 for loans less than 10K and/or less than 1 year tenure. UOB charges 500 for loans less than 30K for corporate borrowers. Maybank charges 200 for loan less than 15K or less than 1 year tenure.

 

I would say there are dealers who are upfront with the fees and some wait til on day of handover and collecting balance and catch buyers off guard.

 

If buyers think its not reasonable, just negotiate and if buyer dont feel its right, move on.

 

Move on? Easy to say when one is not on the receiving end.

 

More than a decade ago when I bought  from a dealer with everything settled  and coe secured, I was slapped with a admin fee before driving off the new car. 

 

No more next time!!!!!!! Admin fee is a scam, it's a crime!!!!!

[Civicfighter]

Move on? Easy to say when one is not on the receiving end.

 

More than a decade ago when I bought from a dealer with everything settled and coe secured, I was slapped with a admin fee before driving off the new car.

 

No more next time!!!!!!! Admin fee is a scam, it's a crime!!!!!

U can actually tell the dealer why it was not written in black and white on the sales agreement and do not sign on the hire purchase agreement and also do not pass them the balance payment. I am sure they will lan lan accept it. It's a decade ago so too bad u already moved on...

[Galantspeedz]

Paying "Admin Fee" is always a sticky issue.

 

There are instances some dont charge.

 

I dont know how others practise. I only charge admin fee when;

1. Loan Mark Ups (Inflated Figures)

2. Completely No Loans (in cases where loans are available for 2yrs and above)

 

Just for your consumer info sake. For loans less than a year some finance collect admin fee, Hong Leong charges 300 for loan less than 1 year tenure, Century Tokyo charges ranging 300-500 for loans less than 10K and/or less than 1 year tenure. UOB charges 500 for loans less than 30K for corporate borrowers. Maybank charges 200 for loan less than 15K or less than 1 year tenure.

 

I would say there are dealers who are upfront with the fees and some wait til on day of handover and collecting balance and catch buyers off guard.

 

If buyers think its not reasonable, just negotiate and if buyer dont feel its right, move on.

They charge because they need to maintain the accounts..

 

What did you do?

 

Anyway funny is why no loan need pay admin fee... when there is less admin to do.. I.e going bank to help full settle the outstanding loan

[Hamburger]

U can actually tell the dealer why it was not written in black and white on the sales agreement and do not sign on the hire purchase agreement and also do not pass them the balance payment. I am sure they will lan lan accept it. It's a decade ago so too bad u already moved on...

 

no point  horse back cannon,

 10 years on, i did not move on, i turn clever dealing with crooks.  Not you, of course.

[Latio2005A]

In my earlier post, I had mentioned buyers just have to put in their minds there will be admin fees on top of watever car price they willing to negotiate ( usually nowadays buyers -$3k to $5k on asking). The sales person will surely tell there is admin fees. If buyers have a clear mind on paying admin fees, I do not think buyers will get shocked and walk off.

I shall repeat again - ADMIN FEE is RUBBISH.

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...

Yes agree.

ADMIN FEE is RUBBISH. 

[Civicfighter]

I shall repeat again - ADMIN FEE is RUBBISH.

 

Yes agree.

ADMIN FEE is RUBBISH.

If you find its rubbish just let the sales person know lar or you can choose to do not pay.

[Civicfighter]

They charge because they need to maintain the accounts..

 

What did you do?

 

Anyway funny is why no loan need pay admin fee... when there is less admin to do.. I.e going bank to help full settle the outstanding loan

If no loan, there is lesser income. Funny part is if you buy new cars with cash, when you are charged with $3k-$5k admin fees, you all pay. Used car $500-$800 you all kpkb. Trade in at agents offer lesser, you all give. Trade in to us offer higher, you all ask for higher and at last still sell to agents.

[Galantspeedz]

If no loan, there is lesser income. Funny part is if you buy new cars with cash, when you are charged with $3k-$5k admin fees, you all pay. Used car $500-$800 you all kpkb. Trade in at agents offer lesser, you all give. Trade in to us offer higher, you all ask for higher and at last still sell to agents.

Then why jscl also charge admin fee for higher loan since that equates to more commission already?

 

Also for AD, I rem that is termed as loan rebate.. no loan no rebate... that's not admin fee

 

It seems you and jscl seems to lump everything that big companies or bank charge extra as admin fee...

 

Pretty hard for you all to justify when 2 different dealers contradicting each other...lol

Edited December 20, 2015 by Galantspeedz

[Lok666]

If no loan, there is lesser income. Funny part is if you buy new cars with cash, when you are charged with $3k-$5k admin fees, you all pay. Used car $500-$800 you all kpkb. Trade in at agents offer lesser, you all give. Trade in to us offer higher, you all ask for higher and at last still sell to agents.

 

Bought twice before from AD and I don't recall ever being charged an "admin" fee. Everything is broken down properly before even concluding the deal. No surprises at the end, no extra fee on top of the agreed car price. So I'm curious about this $3k-$5k admin fee you are talking about.

 

And after factoring in all the discounts, the price I pay is not much different from what dealers quoted me for the same make. In fact dealers' interest rates are much higher, end up I pay much more in the long run. Also none of the dealers offered a better trade-in price than the AD, which I was honestly surprised.

 

Nothing against dealers as I'm sure there are good ones out there. But when stacked against competition from ADs who are able to offer greater peace of mind because of their big company reputations, the impetus is on dealers to offer better transparency and service to attract customers. 

[The_Bear]

If no loan, there is lesser income. Funny part is if you buy new cars with cash, when you are charged with $3k-$5k admin fees, you all pay. Used car $500-$800 you all kpkb. Trade in at agents offer lesser, you all give. Trade in to us offer higher, you all ask for higher and at last still sell to agents.

I think the keywords here are 'upfront' and 'transparency'. As @galantspeedz and a few others have pointed out, the bottomline is the amount that is to be paid for the car. The amount must not exceed what is advertised or agreed. This is only basic business ethics.

 

Authorized dealers sell at the price that they advertise, there is no separate charge for admin fee. As a dealer, I am surprise that you fail to see the difference in the example that you have brought up.

If you find its rubbish just let the sales person know lar or you can choose to do not pay.

That is pretty obvious. Nobody can force another to accept it but it wastes everybody's time. Looking at it from the buyer point of view, dealers have the whole day, week, month to do the deal because it is what they do. Buyers only can afford so much time and energy to go around looking for and negotiating. As a buyer, I rather everything be upfront so that I can make a decision and move on.

 

And another peeve is the excuses that the sales people give are lame to the extent that I feel insulted to even acknowledge. It just adds more to the distrust.

[JCSL]

Then why jscl also charge admin fee for higher loan since that equates to more commission already?

 

Also for AD, I rem that is termed as loan rebate.. no loan no rebate... that's not admin fee

 

It seems you and jscl seems to lump everything that big companies or bank charge extra as admin fee...

 

Pretty hard for you all to justify when 2 different dealers contradicting each other...lol

 

I charge because Mark Ups (inflated selling price) is TAXABLE.

 

A car I posted 40K, buyer wanna loan 32k, the allowed loan is only 24k, in order to apply for 32K loan i will need to mark up the selling price to 53K, in actual fact the difference is 13k, i will be taxed on this 13k which i never ever gotten. Buyer gonna pay for my tax?

 

Are you gonna pay?

 

 

A name for the charges is just a name, no loan for me i can say penalty fee, sounds better?

[Weez911]

I charge because Mark Ups (inflated selling price) is TAXABLE.

 

A car I posted 40K, buyer wanna loan 32k, the allowed loan is only 24k, in order to apply for 32K loan i will need to mark up the selling price to 53K, in actual fact the difference is 13k, i will be taxed on this 13k which i never ever gotten. Buyer gonna pay for my tax?

 

Are you gonna pay?

 

 

A name for the charges is just a name, no loan for me i can say penalty fee, sounds better?

Quote first. This is accounting fraud, and possibly tax evasion.

[JCSL]

I think the conclusion at the end of the day is A Used Dealer SHOULD

 

1. Cannot collect deposit for inspection, no matter how many inspections a day MUST ENTERTAIN (Buyer need to have it THEIR WAY)

2. No Admin Fee (dont care highloan or not highloan or loan or no loan, just cannot charge)

3. Allow buyer to do their own insurance (nevermind the dealer they die or not, important I wanna have it MY WAY)

3. Buy in from owner/seller must buy only at max $1000 less from what Sgcarmart is posting (nevermind if its a mark up for loan price)

4. Sell to buyer must be ultra ridiculously cheap, like at least $5000-$7000 off the asking (best if dealer lose money)

5. Car must be as new condition (leather no crack/torn also must do up a new one)

6. Guarantee/Warranty 6 months for everything in and on the car (wipers and tires as well maybe)

 

 

I guess thats about all, maybe buyers can add on to the list :)

 

 

 

 

 

 

 

 

Quote first. This is accounting fraud, and possibly tax evasion.

 

So therefore i charge to defray my taxes, i am still paying tax for the mark up and then what? I am suppose to suffer?

Edited December 20, 2015 by JCSL

[Civicfighter]

Then why jscl also charge admin fee for higher loan since that equates to more commission already?

 

Also for AD, I rem that is termed as loan rebate.. no loan no rebate... that's not admin fee

 

It seems you and jscl seems to lump everything that big companies or bank charge extra as admin fee...

 

Pretty hard for you all to justify when 2 different dealers contradicting each other...lol

I would also charged higher admin fees for higher loans. I would say upfront to the customer too before signing on the deal. I no need to explain why the need to collect "additional admin fees". This "additional admin fees" are not earn by us anyway. Loan rebate? U mean new cars or used cars?

[Weez911]

I think the conclusion at the end of the day is

 

1. No Admin Fee

2. Buy in from owner/seller must buy only at max $1000 to max $2000 diff from what Sgcarmart is posting (nevermind if its a mark up for loan price)

3. Sell to buyer must be ultra ridiculously cheap (best if dealer lose money)

4. Car must be in tip top or as new condition (leather no crack/torn also must do up a new one)

5. Guarantee/Warranty 6 months for everything in and on the car (tires as well maybe)

 

 

That way all buyers will be the happiest person on earth.

 

 

So therefore i charge to defray my taxes, i am still paying tax for the mark up and then what? I am suppose to suffer?

I dono how u ever balance your books. Who is your Auditor?

[JCSL]

Bought twice before from AD and I don't recall ever being charged an "admin" fee. Everything is broken down properly before even concluding the deal. No surprises at the end, no extra fee on top of the agreed car price. So I'm curious about this $3k-$5k admin fee you are talking about.

 

And after factoring in all the discounts, the price I pay is not much different from what dealers quoted me for the same make. In fact dealers' interest rates are much higher, end up I pay much more in the long run. Also none of the dealers offered a better trade-in price than the AD, which I was honestly surprised.

 

Nothing against dealers as I'm sure there are good ones out there. But when stacked against competition from ADs who are able to offer greater peace of mind because of their big company reputations, the impetus is on dealers to offer better transparency and service to attract customers. 

 

Have you taken loan for the purchase? If you took loan obviously you wont know. The charges are people who dont take loan or take lesser loan compared to the market standard of 50/60%

 

I dont know why you say dealer interest rates are higher than AD, unless you are comparing Used VS New. New car have lower interest rates compared to used. Currently all bank interest stands at 2.98%PA, only CITI at 1.88% but unless you got money to roll.

I dono how u ever balance your books. Who is your Auditor?

 

Are you concerned? Does it bother you? Are you those who loan 80%?

 

Everyone is doing such things, you can afford 40/50% downpayment so you dont know.

 

You think all cars no need mark up? How many can afford, use your KIDNEYS to think.

 

After mark up, the difference will still need to be declared, taxes who pay? Or no need pay?

Please lah... for GOD's sake, buyers may be paying or so-called paymasters, but it doesnt mean we need to suffer lah. Wanna take high high loan but dont wanna pay extra, nothing comes free.

Edited December 20, 2015 by JCSL

[JCSL]

They charge because they need to maintain the accounts..

 

What did you do?

 

Anyway funny is why no loan need pay admin fee... when there is less admin to do.. I.e going bank to help full settle the outstanding loan

 

So if you are gettting a loan like that, and bank want you to pay admin fees, you pay? If yes, meaning its who you pay to and not what you pay for.

 

Less than a year loan we get 0% loan commission, we deserve it?

 

Move on? Easy to say when one is not on the receiving end.

 

More than a decade ago when I bought  from a dealer with everything settled  and coe secured, I was slapped with a admin fee before driving off the new car. 

 

No more next time!!!!!!! Admin fee is a scam, it's a crime!!!!!

 

I wasn't born is the 70's out from my mother's womb in my size today and a car dealer. I was a buyer too, i too don't agree with admin fees, some i pay some i don't, because i rationalize why i am paying and why i am not.

 

Understand why the need to pay first.