What is the Car Dealer's Administration Fee?

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If you think choosing a new car can be a stressful process, just wait until you actually have to sit down and buy or lease it. In addition to deciding how you’ll finance your new purchase, you’ll be hit with any number of extra costs you’ve never heard of before. Ask.cars.com takes a moment to fill you in on one of the standards: The administration fee.

What is the car dealer’s administration fee? (Ask.cars.com)

By Stephen Markley | November 9, 2007 | Comments (5)
Tags: Ask.cars.com

Comments 

Troy in Ft Walton Beach

These "fees" should be regulated in all states (some states do). They vary from dealership to stealership. I've seen one dealer that charged 750.00! I don't mind paying a little for admin fees but c'mon... The people that do the admin work are already on the clock aren't they?

Bill

Where do you think the money comes from to pay for wages of office admin, gas, and admin supplies???? Stop acting like you know anything about the operations of a car dealership and keep being ignorant.

Chip

If Administration fees are part of a dealership's overhead or cost then they should be included in the price of the vehicle along with all the other costs.
Why are the "administration fees" treated separately? We all know why....it's a money grab. What's next ? Are they going to start charging extra fees for the toilet paper in the restroom ? How about tacking on a fee to cover part of the dealer's property tax ?
Any part of the dealer's cost should be included in the retail price. It's simple business. The retail selling price minus what the dealer paid for the vehicle, minus his costs,(overhead, commissions, administration fees, ect...), = PROFIT

Rob

Chip is so right. The so called fees are just added on to try and fleece unsuspecting customers. Any dealer who tries that crap on me, I just get up and walk out. The worst I saw recently was $3,500.00 added to the price of a new Optima. Scratch that car and dealer. There are enough who aren't trying to rip off customers.

Tim

admin fees are a total fraud. Dont pay them. Go to 3 dealers and ask. They'll all be different fees and they will all say everyone is the same. Enough said.

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