Motorhome Purchase - Sales and Admin fees

[Patrick and Lesley]

When a dealership advertises + sales and admin fees along side the marked price of a Motorhome does it usually bump up the price significantly?

 

[Patrick and Lesley]

You need to be aware that if you are buying something on a finance agreement (many motorhomes are) that there will almost certainly be an "admin fee" which is the "fee" charged by the relevant finance company for the documentation on top of the monthly payments.(it is normally charged with the first months payment) There is no "set" fee and it is also possible for the finance company to waive the fee. (on some agreements I have seen it as high as £250.00!!) This can make a significant difference to the overall "cost of borrowing" The other fee, which is a legal requirement, is something called "the option to purchase fee". This is paid at the same time as the final payment on an HP agreement, It legally passes title from the finance company to the customer. I believe that there is no set fee as long as something is paid (minimum £1.00). Buyer beware, this can be extremely high. £50, £75, £150 etc!! (whatever they feel they can get away with!!) My advice is ask what those fees are up front if buying on finance and be prepared to walk if you do not want to pay them.

Perhaps I’ve misread the situation I was looking to pay in full. So the admin and sales fee are only if your buying on credit?

 

[Lazyboy]

If the dealer requests other fees outside of a credit agreement I would definitely walk. They will soon be reduced I suspect.

 

[Yorick]

If the dealer requests other fees outside of a credit agreement I would definitely walk. They will soon be reduced I suspect.

A swift hoof in the bollox gets the same result

 

[Minxy]

4frontcarsales in Hayward’s Heath.

These are the terms:

Perhaps I’ve misread the situation I was looking to pay in full. So the admin and sales fee are only if your buying on credit?

Afraid not, if you are paying cash in full it's £99+VAT regardless, however, if you are financing it, they will charge you £250+VAT to receive the funds from the finance company ...

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[Larby]

These are the terms:

View attachment 196663

So if you are paying cash it's £99+VAT, if you are financing it, they will charge you £250+VAT to receive the funds from the finance company ...

And they get a commision for introducing the customer to the finance company !!

 

[gus-lopez]

You can choose to include VAT in the quoted price or not as you see fit.

Anyone who sells to both trade (i.e. VAT registered) and retail customers will usually show ex VAT prices on everything just for simplicity. It makes no sense whatsoever to run separate systems.

They can't if the general public have access they have to show without vat & +vat. it is an offence otherwise.

We have a MH dealer in Murcia city that advertises with prices & then adds vat . + he then expects you to pay the 4% transfer fee !!
( we have to pay to transfer vehicles here , not just a fill in log book & send off ) runs into 000's sometimes.

 

[Patrick and Lesley]

These are the terms:

View attachment 196663



Afraid not, if you are paying cash in full it's £99+VAT regardless, however, if you are financing it, they will charge you £250+VAT to receive the funds from the finance company ...

Thank you I get what your saying I was wondering, the price there advertising the motorhomes for is inclusive of VAT?

 

[Minxy]

Thank you I get what your saying I was wondering, the price there advertising the motorhomes for is inclusive of VAT?

I haven't looked too closely but I didn't notice any mention of the price being plus VAT.

 

[sueandjohn]

Ye

I thought retail sales you had to include VAT in the price but trade sales can be ex VAT.

yes they do!!!!!

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[Jim]

You can choose to include VAT in the quoted price or not as you see fit.

If you are selling to the public, taxes should be included, otherwise it's a "misleading omission"

 

[icantremember]

4frontcarsales in Hayward’s Heath.

If you hover your mouse over the "+ Sales Admin Fee" on their website it gives details and costs.

 

[joka250]

This topic is so fraught with uncertainties that it could become another gassing or payload type stream. Now what else can we think ?

 

[Patrick and Lesley]

This topic is so fraught with uncertainties that it could become another gassing or payload type stream. Now what else can we think ?

I’ve have emailed them to clarify there terms just waiting there reply.

 

[Gromett]

If you sell to the public you must show the price including VAT. If you sell to both trade and public you are allowed to show both the inclusive and exclusive price however the inclusive price must be of equal or greater prominence and clearly marked.

This came in sometime in the 90's. The company I worked for got slapped for doing this and we had to redo all our price lists and labels etc.

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[Gaston aires]

We do not want to copy the Americans. Price + state tax + US tax + tips. I hate that way of trading.
A price should be a price.
Phil

 

[Minxy]

If you hover your mouse over the "+ Sales Admin Fee" on their website it gives details and costs.

Yup, that's what I took a copy of and posted earlier ...

The annoying thing is though is that its the ONLY way to view the terms, they aren't listed anywhere else on the website that I can find.

 

[Yorick]

We do not want to copy the Americans. Price + state tax + US tax + tips. I hate that way of trading.
A price should be a price.
Phil

In the US there are about 85,000 tax rates so impossible to include in sale price.

 

[Allanm]

I’ve have emailed them to clarify there terms just waiting there reply.

I know this is an old thread, but I too have seen the sales admin fee quoted on the 4frontmotorhomes website and wondered if you ever got a reply? We were going down there to look at their vans but the added fee seems like a rip off to me and we won’t be visiting. Plenty more dealers around that don’t ( visibly) charge this fee
I also asked them what their fee covers and why they apply it

 

[Allanm]

So, I got a reply
“
Good morning

Thank you for your enquiry,

Every dealer in the country has an administration fee applying to all vehicles,

This is part of us covering you for test drive if necessary, having an HPI on request, doing all the finance documents and all paperwork necessary, taxing the vehicle, registering the vehicle, first 6 or 12 months warranty, etc,

If you are interested in any particular motorhome please let me know which one is it so i can confirm availability.

Hope this helps.

Best regards.”

So, everything you would normally do when your business is selling vehicles, only they get you to pay again for it.

I’ll be looking elsewhere.

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[Spriddler]

I do wonder if they have not actually purchased the vehicles they are advertising but are selling as agents for the owners on a commission basis and need to derive additional income over and above their margin on the vehicle itself.
They are less than 10 miles from my house so I may pop in when passing and just out of devilment pursue their reason for the way they show the fees.

 

[Parrot Face]

I suspect you may be right Nick, but of course that is neither the buyers concern or business. As all have said, the price should be the price. Not sure if it would do any good, but I wonder what Trading Standards would think of it.

When buying vehicles of any type, I walk into the dealership and up to the salesman and say to him "bearing in mind you will have one go at this, what is your best price ? "
Its funny sometimes to see there reaction when you turn to walk out. Sometimes I have to explain what "one go" means. Miserable old SuperMike.

If I ever do buy from a dealer I am taking Supermike with me.

 

[Spriddler]

When buying vehicles of any type, I walk into the dealership and up to the salesman and say to him "bearing in mind you will have one go at this, what is your best price ? "

I do much the same. I used to buy and sell old MG's and other vehicles as a fairly full time 'hobby'.
My opening gambit to the dealer after a test drive is along the lines of: "Before you go into the facts that your car is the highly desirable model with the double USB socket and passenger cup holders and my part exchange is the much less popular model with pink wing mirrors and has a scratched hub cap just give me the bottom line of how much I would need to pay you to drive it away now". I can't stand all their 'Trade' waffle and highly trained furrowed brow agonising.

 

[mitzimad]

surely it doesnt matter how they build up the total cost its only the final total cost that is relevant people saying they wouldnt do business with any one who added fees ,if it was 3000 pounds cheaper than another dealer in total ,are being silly

 

[Deleted member 29692]

surely it doesnt matter how they build up the total cost its only the final total cost that is relevant people saying they wouldnt do business with any one who added fees ,if it was 3000 pounds cheaper than another dealer in total ,are being silly

Of course it doesn’t matter.

What the people who are saying that don’t realise, or are pretending to ignore, is that everyone adds the same fees, they just don’t all tell the customer about it.

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[Abacist]

And they get a commision for introducing the customer to the finance company !!

I think you will find that the fee is only if you arrange your own finance as you are then depriving them of their commission from their tame finance company that they like to use. I'd tell them to stick it and go elsewhere! Its a rip off!
Cash is king for those that have it! Those that can't really afford it usually have to pay more.

 

[Lot lover]

No doubt most of you would refuse to fly with Ryanair. Once upon a time there was an old saying about nose and face - all that matters is total cost, not how it is calculated.

 

[Cheshirecat57]

No doubt most of you would refuse to fly with Ryanair. Once upon a time there was an old saying about nose and face - all that matters is total cost, not how it is calculated.

Ryanair "wronged" me 12 years ago...……….I have never and will never fly with them again

 

[MyrtleGuru]

Ryanair "wronged" me 12 years ago...……….I have never and will never fly with them again

Me too, although more like twenty years in may case. Wouldn't touch 'em with a bargepole ever since. One more benefit of owning a motorhome -- no need to help fund shyster O'Leary's next racehorse.

 

[gus-lopez]

No doubt most of you would refuse to fly with Ryanair. Once upon a time there was an old saying about nose and face - all that matters is total cost, not how it is calculated.

Or me . even used to refuse to collect or drop off anyone who was flying with him. Absolute scum of a company. Wife uses them, when absolutely nothing else is available, & I even struggle picking her up

I was looking here tonight & with one company if you didn't want finance over 10 years the price of the vehicle increased. Mind you that is normal here. So is no part -ex- Or if they grudgingly accept part. ex the price of the vehicle increases x number of 000's

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[pappajohn]

Just a thought.

Could this perhaps be a vehicle they're selling on behalf of someone else and the sticker price is what the actual seller wants for it?

In that situation the dealership would obviously charge a commission or fee.

If that is the case then it might be that their fee is a set figure that will be added to whatever price is eventually agreed with the seller.

Any fee should be paid by the seller, not the buyer.
You wouldn't buy a house then be expected to pay the sellers estate agent fees on top of the sale price