New car buy affected by VAT increase! HELP!

pobpob

Hi all, Im after some help on a VAT matter...

In september I put down a deposit for a new V popular car. No deals, no discounts - Full sale price! However i was told delivery would be end of Oct/Nov. Time has gone on and on and now i am being told to expect delivery end of january at the earliest.

Obviously VAT is increased again in January and i have been told by the dealer that my car purchase is subject to this and I will have to pay the difference!

Am i right to think this is very out of order? Considering they have delayed delivery by over 3 months I would hope that even as a kind gesture they would offer to pay the difference. I assumed that as the deposit was payed, price agreed etc that the VAT increase would not effect the purchase??

Does anyone know my rights on this issue? I intend to put up a fight for this as I have been messed about for so long now.:mad:

Any help would be greatly appreciated...

Thank you[/FONT]

motorguy

Very popular as in 'lots about' or very popular as in 'in much demand'?

VAT is based on the invoice price when you buy the car, not when it was ordered, so they'd be right to have to charge you the revised VAT rate.

As for getting them to pay it, i'd be pushing hard for that, given the delay was hardly your fault.

pobpob

Thank you, popular as in much demand! not sure if im allowed to say the brand etc! but new revamped retro car 500! ;o)

motorguy

pobpob wrote: »

Thank you, popular as in much demand! not sure if im allowed to say the brand etc! but new revamped retro car 500! ;o)

I would say the dealership is trying it on. They maybe have 20 cars going out soon that are affected by this so if they pay all the vat they could be out many thousands.

The only thing i would say is that if your new car doesnt turn up now until the new year, then it will be registered 2010 and the increase in resale value because of that will outweigh the 2.5% VAT.

pobpob

Unfortunately i wont even benefit from the 2010 plate as that doesn't begin until march! this was my other issue! I purchased in sept hoping to get an early 59 plate but obviously this hasn't happened!!

terryya

It'll still be a 2010 59 plate though so should be worth more than on '09.

economiser

You could of course pay for the car before the end of the year. I think as long as you pay at least £100 of the cost on credit card you would have protection against the dealer defaulting. Don't think I would want to do this though.

emmell

I had this with a Honda civic in 2006, ordered beginning of Oct for Nov or early Dec delivery, wasn't affected by a vat increase but the build date was delayed to Jan with delivery in Feb so I told them I didn't want it registering till March 1st so I took advantage of the new reg and I didn't pay a penny extra I was willing to cancel the order though and they new that. This scrappage scheme has made main agents so cocky that they don't even have to work hard to sell a car, no discounts, no incentives and let customers just wait around till it suits them.
By the way, I wouldn't want a 2010 car with a '59 plate, I'd rather pay the 2.5% and make them wait till March 1st.
ML.

matt1987

I would cancel the order if they are going to be like that!

Chippy_Minton_2

OP this is similar to the posts about return of deposits.

The question being when is/was the contract struck up?

No doubt you have an agreement to pay the dealer £X for the Fiat 500. They agreed to supply your car on date Y. They have delayed it to date Z and now want £X plus and extra 2.5%.

Have you signed to say you will pay £X?
If so read the small print, stick to your guns and be prepared to walk (with your deposit returned to you) if you don't want to pay the extra 2.5%.

Lemonade_Pockets

Chippy_Minton wrote: »

Have you signed to say you will pay £X?
If so read the small print, stick to your guns and be prepared to walk (with your deposit returned to you) if you don't want to pay the extra 2.5%.

I think you'll find if the OP reads the small print he or she is liable for any change in the VAT.

When you purchase a car you purchase it at £X plus VAT. If the VAT changes hard lines.

Now it could be argued that out of goodwill the dealer should cover it since delivery has been delayed. But goodwill is exactly that its not a contractual obligation you have no right to it.

If you read the T+C's carefully OP you will probably find that you can request delivery (in writing) within 7days after a certain time period has elapsed (usually 3months) if the dealer fails they have to return your deposit.

However you will then have to start all over again from scratch. So the choice is yours if the continue to pay hard ball.

N.b The dealer cannot invoice for the car until it is a position to transfer the risk and reward (ownership) to the new owner. I.e. They can only invoice once they physically have the car and the OP is willing to pay for it in full. Surprisingly for two reasons 1) revenue recognition, 2) tax avoidance.