vat rise and ordered cars

[undred orse]

if as expected vat goes up in the budget how will this affect cars that have been ordered and a deposit paid but not yet delivered?mine is due in the early part of july.

thanks for any advice.

[RicksAlfas]

VAT not likely to go up until after the Xmas sales so unless you've ordered a Zonda it should be here in time.

[iggletiggle]

The problem is that the manufacturer doesnt invoice the dealership until the vehicle has arrived in the UK.

Therefore the dealer is invoiced at whatever VAT rate is applicable when the car arrives into the UK.

Thus you would be expected to pay any rise in VAT / First Reg Fee / Vehicle duty - even if you pay in full the day you order it. Some dealers (if they have the margin) will offer to cover most if not all of the rise but this is usually only when you have purchase a car at near full price (leaving the biggest margin in the car).

As said above the VAT is likely to rise early next year and so you should be OK to be honest, but if it does go up on 1st July expect to pay the rise.

HTH

[HellDiver]

Hmm...hope it doesn't happen in the next few days, the OH has just ordered an i30...

[nick heppinstall]

iggletiggle said:

The problem is that the manufacturer doesnt invoice the dealership until the vehicle has arrived in the UK.

Therefore the dealer is invoiced at whatever VAT rate is applicable when the car arrives into the UK.

Thus you would be expected to pay any rise in VAT / First Reg Fee / Vehicle duty - even if you pay in full the day you order it. Some dealers (if they have the margin) will offer to cover most if not all of the rise but this is usually only when you have purchase a car at near full price (leaving the biggest margin in the car).

As said above the VAT is likely to rise early next year and so you should be OK to be honest, but if it does go up on 1st July expect to pay the rise.

HTH

Cant see that to be honest. We have a car arriving around the middle of July. We have paid a deposit etc.

We're on a tight budget as it is. If the dealer then says to us we have to pay the extra VAT then I would be telling the Dealer he can keep it.

[iggletiggle]

iggletiggle said:

nick heppinstall said:

iggletiggle said:

The problem is that the manufacturer doesnt invoice the dealership until the vehicle has arrived in the UK.

Therefore the dealer is invoiced at whatever VAT rate is applicable when the car arrives into the UK.

Thus you would be expected to pay any rise in VAT / First Reg Fee / Vehicle duty - even if you pay in full the day you order it. Some dealers (if they have the margin) will offer to cover most if not all of the rise but this is usually only when you have purchase a car at near full price (leaving the biggest margin in the car).

As said above the VAT is likely to rise early next year and so you should be OK to be honest, but if it does go up on 1st July expect to pay the rise.

HTH

Cant see that to be honest. We have a car arriving around the middle of July. We have paid a deposit etc.

We're on a tight budget as it is. If the dealer then says to us we have to pay the extra VAT then I would be telling the Dealer he can keep it.

Unfortunately it is the case and has been since i have been involved in the motor trade in one way or another. The dealer cannot afford to cover the extra 2.5% on all the customer cars that happen to come in after the VAT increase and the government arent going to let them off either..

Part of the t+c's in a new car ordering contract almost always state the above figures are subject to any alterations in government taxes, manufacturers prices increases, manufacturer to
dealer discount margins, manufacturer registration campaigns and any changes to be agreed by both parties prior to delivery - Or something of similar effect. Most manufacturers price protect against their increases but not against tax/ved changes

But as said i wouldnt expect a VAT increase until the new year.

Edited for formatting screw up.

Edited by iggletiggle on Monday 21st June 12:16