New car buy affected by VAT increase! HELP!

pobpob

Thanks everyone for the help...

Im definitely going to fight for not paying the VAT, i think out of pure courtesy for the long delay they should pay it! I had no idea that when i purchased a car in sept that i would be paying in full in january... and apparently even if i'd have paid in full before dec i would still be subject to the VAT increase. If they still demand the extra VAT then I definitely do not want my car registered until March.

Ive just been reading through the order contract and it say that if the dealer does not deliver within 21 days of the estimated delivery date then i can demand delivery within 7 days or get my deposit fully returned. So there is always that option... which would be a shame considering i've waited so long now!

Will keep you posted on my progress...i'm sure there are many others suffering with the same problem.

next step...meeting with the manager...:eek:

Wig

Lemonade_Pockets wrote: »

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

Yes but is he liable for accepting a delay on the date of delivery? He will need to read the small print about that, and by the looks of the OP last post he isn't liable for that.

If this was a scrappage deal, it could complicate matters if the car has already been scrapped - oh dear what now?
If it hasn't been scrapped the scrappage deal ends this month and has not yet been extended AFAIK.
(re-reading the OP it says it wasn't so the OP is free to take his business elsewhere, or atleast threaten to do so, I would accept the extra VAT and tell them that you want to wait till March 2010 to take delivery.)

matt1987

Scrappage ends in Feb!

motorguy

pobpob wrote: »

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!!

Come resale time an 2010 will be worth more. You only have to look at autotrader - cars are listed by year and not by reg plate.

Premier_2

pobpob wrote: »

...Does anyone know my rights on this issue?...

You have to pay the applicable rate of vat.

It's nothing to do with the dealer - they are simply acting as tax collectors for the government.

If you don't like the increase (though there were not many who supported the decrease 12 month ago), speak to your MP.

Remember, we all have the option again of choosing our government in the next few months

motorguy

Premier wrote: »

You have to pay the applicable rate of vat.

It's nothing to do with the dealer - they are simply acting as tax collectors for the government.

If you don't like the increase (though there were not many who supported the decrease 12 month ago), speak to your MP.

Remember, we all have the option again of choosing our government in the next few months

I think the underlying question here is, given the large delay on getting the car compared to when the O/P was originally told to expect delivery, should the garage pay the extra VAT?

Inactive

pgilc1 wrote: »

I think the underlying question here is, given the large delay on getting the car compared to when the O/P was originally told to expect delivery, should the garage pay the extra VAT?

I think that very much depends on how saleable the car is, I suspect the dealer could sell it a dozen times over, given the waiting list.

mikey72

It's not 100% clearcut
(as a trader)
Each sale has a [FONT=Helvetica 65 Medium,Helvetica 65 Medium][FONT=Helvetica 65 Medium,Helvetica 65 Medium]tax point[/FONT][/FONT]. This is the date by reference to which you become liable to pay VAT. The tax point may be:
[FONT=Helvetica 55 Roman,Helvetica 55 Roman][FONT=Helvetica 55 Roman,Helvetica 55 Roman]• [/FONT][/FONT]The date of supply.
[FONT=Helvetica 55 Roman,Helvetica 55 Roman][FONT=Helvetica 55 Roman,Helvetica 55 Roman]• [/FONT][/FONT]The date of issue of the invoice.
[FONT=Helvetica 55 Roman,Helvetica 55 Roman][FONT=Helvetica 55 Roman,Helvetica 55 Roman]• [/FONT][/FONT]The date you receive payment.

Check with Customs and Excise what the garage should charge you based on the invioce being issued before the change comes in, ie at the order point, but payable on delivery of the car.

Premier_2

pgilc1 wrote: »

I think the underlying question here is, given the large delay on getting the car compared to when the O/P was originally told to expect delivery, should the garage pay the extra VAT?

That would all depend on the terms of the contract.

Usually there is no cut off date on such a sale contract (although there is no legal reason why there can't be) and I suspect there was no agreement that "time was of the essence".

If there were such terms, I would expect them to be that the buyer could cancel the contract owing nothing, rather than terms that made the seller responsible for any/all consequential loss.

Premier_2

mikey72 wrote: »

It's not 100% clearcut
(as a trader)
Each sale has a [FONT=Helvetica 65 Medium,Helvetica 65 Medium][FONT=Helvetica 65 Medium,Helvetica 65 Medium]tax point[/FONT][/FONT]. This is the date by reference to which you become liable to pay VAT. The tax point may be:
[FONT=Helvetica 55 Roman,Helvetica 55 Roman][FONT=Helvetica 55 Roman,Helvetica 55 Roman]• [/FONT][/FONT]The date of supply.
[FONT=Helvetica 55 Roman,Helvetica 55 Roman][FONT=Helvetica 55 Roman,Helvetica 55 Roman]• [/FONT][/FONT]The date of issue of the invoice.
[FONT=Helvetica 55 Roman,Helvetica 55 Roman][FONT=Helvetica 55 Roman,Helvetica 55 Roman]• [/FONT][/FONT]The date you receive payment.

Check with Customs and Excise what the garage should charge you based on the invioce being issued before the change comes in, ie at the order point, but payable on delivery of the car.

The garage may not be prepared to invoice early as if they do, they will be required to account for vat in that quarter to HMRC whether or not the customer has paid.

It may be the customer is willing to pay in full now too, before even seeing the car. Risky!

There is also some recent anti-avoidance legislation that has been introduced regarding payments that spread over the increase date e.g. if only a deposit is paid.