Tax on new car

[TimewarpUK]

Hi

I ordered a new car with a dealer in March, and it is due to be delivered to the dealer this week.

However, there's now a Tech Hold on the car, which is similar to a recall, but BMW will have to fix the issue before it can be released to the dealer.

The dealer wants to register the car in June for their quarterly figures, but I've said I'm not happy with registration until the vehicle is available.

In addition it seems silly to register it in June as I've realised I'll be paying a whole month's tax for just 1 or 2 days. Is this correct, or can dealers do anything to avoid this on new cars?

Of course the dealer wants their figures, but I never agreed that the deal was only on the table if completed by July. First year tax is £895.00 so obviously a lot to waste for a month.

Cheers

[NDA]

The dealers sales figures are not your concern - unless you were given some kind of special discount to take delivery in the relevant quarter?

When will you finalise payment on the car? Once you have taken delivery I assume.

[TimewarpUK]

Yes, no mention of a time frame for the deal, only an estimated delivery date that I recall.

My plan was to only finalise payment when delivered, but I'm not sure if they have other ideas regarding payment or registration.

I could press for a discount equivalent of one month's tax if they insist on this early registration?

[Dolf Stoppard]

And what happens if the tech issue isn't resolved in July? Do they just expect you to keep taxing it? Forget their sales figures and agree to pay for it / tax it when ready for collection.

[The Rotrex Kid]

Dealers can tax for 12m + a week on first reg so you wouldn’t lose anything.

[2 sMoKiN bArReLs]

The Rotrex Kid said:

Dealers can tax for 12m + a week on first reg so you wouldn’t lose anything.

Unless June becomes July which becomes September or later.

Don't let the dealer do this, it's not right.

[TimewarpUK]

Dolf Stoppard said:

And what happens if the tech issue isn't resolved in July? Do they just expect you to keep taxing it? Forget their sales figures and agree to pay for it / tax it when ready for collection.

Definitely! Yeh no point in registering it until I can have it. But this was their original idea.

[TimewarpUK]

The Rotrex Kid said:

Dealers can tax for 12m + a week on first reg so you wouldn’t lose anything.

Is this true, any reference/links? Ta

[NDA]

You won't want to take delivery (pay for it) until your car is ready and the recall is sorted.

You won't want to tax your car until you own it.

Tell them to have a word with themselves!

[liner33]

Plus lose a months warranty and need to service it a month early . Don’t let them do it

[The Rotrex Kid]

TimewarpUK said:

The Rotrex Kid said:

Dealers can tax for 12m + a week on first reg so you wouldn’t lose anything.

Is this true, any reference/links? Ta

Nah, I just made it up

There’s probably something out there about it. Look for AFRL/RAV

[The Rotrex Kid]

2 sMoKiN bArReLs said:

The Rotrex Kid said:

Dealers can tax for 12m + a week on first reg so you wouldn’t lose anything.

Unless June becomes July which becomes September or later.

Don't let the dealer do this, it's not right.

Doesn’t change that fact that that can do what I said.

Up to the OP if he wants to allow it. We do it very often but we have had the discussion with the customer at the point of order that if their car hasn’t arrived by XX date (normally a cutoff for registrations for a certain offer/deal) then it will need registering. If they aren’t happy with that then they take the risk that they may miss out on the deal. As long as it’s laid out then, it’s no issue.

Dealer in this case obviously hasn’t done this.

[TimewarpUK]

The Rotrex Kid said:

TimewarpUK said:

The Rotrex Kid said:

Dealers can tax for 12m + a week on first reg so you wouldn’t lose anything.

Is this true, any reference/links? Ta

Nah, I just made it up

There’s probably something out there about it. Look for AFRL/RAV

A guy on the internet said so.

Nah I appreciate your knowledge, but I like to have hard facts at my fingertips. Ta. I did Google but it came up with a PH post from 2010 so I wondered if it still applied in a post tax disc era.

[The Rotrex Kid]

TimewarpUK said:

The Rotrex Kid said:

TimewarpUK said:

The Rotrex Kid said:

Dealers can tax for 12m + a week on first reg so you wouldn’t lose anything.

Is this true, any reference/links? Ta

Nah, I just made it up

There’s probably something out there about it. Look for AFRL/RAV

A guy on the internet said so.

Nah I appreciate your knowledge, but I like to have hard facts at my fingertips. Ta. I did Google but it came up with a PH post from 2010 so I wondered if it still applied in a post tax disc era.

Yes it’s quite an obscure thing. There’s basically an extra box on RAV that says ‘extra weeks’ (or something) that gets ticked, the RFL starts the 12m period from the 1st of the next month and the dealer gets charged an extra pro rata rate for the week or so. I’ll see if I can dig something up!

[sociopath]

If they want to register it early then surely they should pay for it?

[The Rotrex Kid]

The Rotrex Kid said:

TimewarpUK said:

The Rotrex Kid said:

TimewarpUK said:

The Rotrex Kid said:

Dealers can tax for 12m + a week on first reg so you wouldn’t lose anything.

Is this true, any reference/links? Ta

Nah, I just made it up

There’s probably something out there about it. Look for AFRL/RAV

A guy on the internet said so.

Nah I appreciate your knowledge, but I like to have hard facts at my fingertips. Ta. I did Google but it came up with a PH post from 2010 so I wondered if it still applied in a post tax disc era.

Yes it’s quite an obscure thing. There’s basically an extra box on RAV that says ‘extra weeks’ (or something) that gets ticked, the RFL starts the 12m period from the 1st of the next month and the dealer gets charged an extra pro rata rate for the week or so. I’ll see if I can dig something up!

This is from a V55 form guidance but covers the same thing as the RAV system.

[L_G]

The Rotrex Kid said:

This is from a V55 form guidance but covers the same thing as the RAV system.

Intriguing, presumably this would explain why the first year's tax on my current car ran for a year and just over a week.

[TimewarpUK]

Thanks @The Rotrex Kid

[AstonZagato]

I've had this a couple of times - but only when the deal was already explicitly only available if the car were registered before a quarter-end. The deals were both sufficiently compelling that I was happy to accede. The most annoying one was when we agreed a Christmas delivery but the garage failed to prepare the car. The ended up delivering on 31st Dec. I tried asking for 1st Jane but was told that the deal included some of their quarterly bonus, so I'd have to pay list if I delayed for a day. As I'd absolutely nailed the deal, I wasn't prepared to let the deal go.

[2 sMoKiN bArReLs]

The Rotrex Kid said:

2 sMoKiN bArReLs said:

The Rotrex Kid said:

Dealers can tax for 12m + a week on first reg so you wouldn’t lose anything.

Unless June becomes July which becomes September or later.

Don't let the dealer do this, it's not right.

Doesn’t change that fact that that can do what I said.

I know, I was a dealer for ten years.

It's still wrong though