Admin fee for using outside finance?

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This topic contains 1 reply, has 2 voices, and was last updated by Stuart Masson Stuart Masson 1 month, 2 weeks ago.

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  • #147481 Reply

    Mark

    Hi everyone,
    I’m looking at getting a half decent car in the near future.
    I’ve managed to get finance approved via my bank, I just have to decide on the car and press the button, they pay the dealer and I pay back the bank. In my eyes this is essentially a cash buy for the dealer, as they get the full cash price immediately from the bank.
    What I don’t understand is why a dealer I was about to go and visit advertises on their website an admin charge for finance buys outside their small list of approved finance brokers. A whopping £495 charge for my bank to give them the full cash price as opposed to me giving it them? They wouldn’t charge me this if I was paying in cash so why can they charge this for my bank to? The bank only ask for sort code and account number so it’s not like anything has to be set up between them that would take time or money, just a transfer.

    Is this common?

    Thanks in advance, Mark.

  • #147602 Reply
    Stuart Masson
    Stuart Masson
    Keymaster

    Hi Mark. There’s no way they can justify that charge for you using your own finance provider instead of theirs.

    Why don’t you get the back to transfer the money to you and then you pay the dealer?

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