Auto Trader has announced that “as part of its commitment to deliver a transparent and fair experience for both car buyers and retailers, from May this year Auto Trader will publish admin fees on adverts of those retailers who charge them in addition to the advertised purchase price of a vehicle”.
“The move marks a key step in Auto Trader’s objective of supporting all its retailer partners in their transition to digital retailing, by enabling them to compete on a more level playing field online”, Auto Trader added.
With the aim to address the inconsistencies around admin fees, Auto Trader will enable retailers who do not charge a fee to display this clearly on their adverts. Over the last eight months Auto Trader has been asking its retailer partners to let them know though their Portal accounts whether they do or do not charge an admin fee. So far over 8,000 retailers have informed them, however, there are still several thousand who have not yet provided this information.
Retailers who are yet to do so are urged to inform Auto Trader via their Portal accounts by the 26th February 2021. Those who do not charge a fee will receive a ‘no admin fees’ flag on their adverts. Those who do will be able to configure the amount they charge and for which vehicle types, and from early May details of the fees will be displayed on their adverts. If retailers don’t contact Auto Trader by the deadline, it will be assumed they do charge an admin fee and its team will work with them to configure the amount they charge so that it can be clearly communicated on their adverts.
Auto Trader also highlighted that anything which is entirely optional for the buyer is not classified as an admin fee. Many retailers offer value-add products or services which can enhance the buying and ownership experience but are not essential to complete the purchase of the vehicle advertised, such as warranty, GAP insurance, membership schemes, or home delivery fees.