Ordering a new car - VAT problems

[Amateurish]

I was trying to put in a new car order today through Autobytel which is basically just an internet brand of Inchcape. Their webite clearly says on a scrolling banner:

"17.5% VAT Protection Guaranteed On ALL VW Orders!"

So I put in my Polo order and they say I have to pay £300 extra than the quoted price because of the VAT rise.

What about your website, says I.

Ah sir, only stock models.

But website says "ALL" orders...

... salesman confers with colleague...

Yes sir, you can have it at 17.5% but you have to pay the full price today. For a car that will be delivered in four months or so.

I say - can't you just raise a VAT invoice now and I'll pay the deposit today plus balance on delivery?

No.

Any advice or similar experiences?

[choptop]

Can you get it elsewhere?

[Amateurish]

It's nearly £2k discount off a new Polo which I haven't seen elsewhere.

[playerone]

anonymous said:

[redacted]

Sounds like BMW? There is some confusion about price protection in the dealer network. You pay when the car is delivered as long as the car is registered with BMW. Basically they will cover the VAT bill.

You might want to buy from a dealer who knows what they are doing

[Steve H]

There are some fairly specific regs covering this, THIS IS THE GUIDANCE FROM WHEN IT WENT FROM15% BACK TO 17.5% THIS YEAR, I'd guess that similar applies now when it goes up to 20%.
In particular, this bit -

"If you are a retailer you must use the 17.5 per cent rate for all takings that you received on or after 1 January 2010. But if your customer paid after 1 January for something they took away (or you delivered) before 1 January 2010, your sale took place before 1 January 2010 and you should use the 15 per cent rate."

suggests that they can only do it at the lower rate if you receive the goods prior to Jan 1st.

[Amateurish]

According to Whatcar if the dealer raises a VAT invoice now then the whole order attracts VAT at today's rate, as long as the car is delivered according to VW's normal delivery schedule. VW then has the liability to pay the VAT in their normal return. However, I would be happy to pay the VAT as the deposit on the CC. I just can't russle up £12k in one hour's notice.

Edited by Amateurish on Thursday 30th December 20:25

[Amateurish]

But what really annoys me is that the first scrolling banner on

www.autobytel.co.uk

is "17.5% VAT Protection Guaranteed On ALL VW Orders!"

[GreigM]

So what they are saying is you can have a 17.5% VAT rate on all cars you buy BEFORE THE VAT INCREASE - what, just like EVERY OTHER fkING CAR DEALER EVERYWHERE.

I think a call to VW headquarters, and the ASA (or equivalent) is required!

[davepoth]

The 17.5% VAT rate is probably being applied to the build spot, rather than the car. The VAT rules put the point of supply as the point at which VAT should be applied, so if the car is what's being paid for, and it won't be delivered before 1/1/11, then VAT should be 20%.