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Unenforceable conditional credit agreement
I purchased a caravan in November 2011, the pre contract agreement stated the price as £37000, however the conditional credit agreement with Santander which I signed states the price as £31000 plus £6000 VAT.
I only became aware of this when I realised that a friend of ours who purchased the exact same van was paying £100 per month less.
As there was no VAT due on static caravans in 2011, is this contract enforceable in the courts and can I demand a reduction as the book value for the caravan in that year was indeed just £31000!
I only became aware of this when I realised that a friend of ours who purchased the exact same van was paying £100 per month less.
As there was no VAT due on static caravans in 2011, is this contract enforceable in the courts and can I demand a reduction as the book value for the caravan in that year was indeed just £31000!
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Comments
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Did you borrow 37k or 31k?0
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Why would anyone agree to pay 37,000 for a shed with a book price of 31,000? Must be some kind of loon.0
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I borrowed £31000 but paid a £6000 cash deposit as well, bringing the total cost of the caravan to £37000: the price it was advertised at.
On the VAT details section of the contract it gives the net value of the goods as £31000 and a 20% VAT rate of £6000 bringing the total to the advertised price of £37000.
Therefore my £6000 deposit has paid for VAT which was not chargeable on static caravans at the time of purchase.0 -
20% of £31000 is £6,2000
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In reply to Apples2. In retrospect I should not have trusted the reputable holiday leisure company that sold me the van; not to bump the price up but, like many others I did: the same company is now advertising the van at £43000!
Its a lot of money but it gets me away every weekend into the countryside; sitting by a stream near a country pub in the heart of Wales.
May be a Loon but am a chilled out Loon!0 -
The figures are rounded, therefore approximate. My point is VAT was not chargeable at the point of sale therefore as my agreement clearly states that I have paid VAT; is the agreement enforceable?0
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Given it was a misstatement by you at the start of the loan (albeit inadvertent) I very much doubt it.
You might be able to pursue the vendor for the VAT though. If it was ever actually VAT and not just an inflated price0 -
Just claim it back from hmrc0
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Are you sure they've not just put your £6k deposit in the wrong box on the agreement as the cost of the van is correct? Are you being charged interest on the £31k you actually borrowed or £37k?0
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