VAT cut and new car purchase

sdooley

If you're a consumer the price advertised or agreed is assumed to be automatically inclusive of VAT unless stated otherwise (think if you buy a paper for 50p you pay 50p not 50p + VAT). Given the VAT change however you want to make it explicit (to avoid any later argument) that the price agreed is inclusive of VAT.

The showroom might invoice early to bring forward the VAT date - and therefore the date they have to pay the Revenue the VAT - there are some quite tricky rules around whether this works - broadly speaking it may work so long as payment will be within 6 months of the invoice - from the customer's point of view all that is important is the price agreed is all he'll pay. The dealer might offer the discount and choose to sit on your deposit till later and invoice at 17.5% - who knows whether the cash-flow advantage is worth more to them at the moment than 2.5% of the price?

Also you want to get your financing rock-solid sorted before signing up to any deal - no good if they pull the offer so you can't afford to pay on delivery.

Pricy147

some very useful tips and info - thanks both!

John_Pierpoint

If paying in advance, I would be tempted to put some of the transaction on credit card, just in case the dealer goes bust before delivery?.

slipp_digby

my stealer fudged the delivery date for me to get in at 15%

then again, i threatended to cancel the order the day of delivery when the car was registered to me sat outside the showroom!!!

going the other way for a few months might take some pursuading but if you dont ask you wont get.