Car Purchase

JasonLVC

bclark wrote: »

I am guessing that you have never bought a brand new Car? You don't pay for it until it arrives, even as a factory build. Normally you will pay a £500-1000 deposit but that's it.

Now, if the car is paid for via fiannce, then indeed the finance company will not release the funds until the car is in the dealership, PDI'd and ready to go so the avoiding the VAT rate idea is unlikely to work in these scenarios. That is nothing to do with being illegal and the VAt not being due on something that doesn't exist, just the finance company will not release funds until they have an asset they can off-set their finance against as if you default on your repayment they haven't got a car they can take off you!.

But where you are paying cash or have your own finance arranged then the previous comments still stand.

pendulum

bclark wrote: »

I am guessing that you have never bought a brand new Car? You don't pay for it until it arrives, even as a factory build. Normally you will pay a £500-1000 deposit but that's it.

I know it's not normal to pay 100% for a car before delivery, what I am saying is that I don't see why it would be illegal to do so. Buying a car is still buying customised goods at the end of the day, and it's quite normal to have to pay 100% up front before most customised goods are made for you. If paying for 100% of the car before it is made is illegal as you claim, I would like you to quote me the law that says so...

emmell

sanadian wrote: »

Ordered new vehicle in July for possible delivery in 3 months, car dealer informed me last week there has been a delay by the manufactures, car will not be delivered until February 2010. as every one knows the VAT increases in January 2010, they expect me to pay the difference. I am not prepared to pay anymore as this delay is not my doing.

If they are expecting you to pay more for a Feb 2010 car then tell them you don't want it registering before 1st March 2010 then you will get the new reg and the price increase will probably be absorbed in the plate change. If they refuse to hold the car till March, you refuse to pay anymore. In other words if you have to pay an extra 2.5% tell them you don't want the car till 1st March, a 2010 car is better with a 10 plate than a 2010 car with a 59 plate.
ML

sanadian

Thank you for advice, however I did suggested to the dealer about registering the vehicle on the 1st Marc, will keep all posted.

sanadian

It is a cash purchase , no part exchange or scrappage deal. Thank you for your advice.