I notice from the latest prices on the SUK website, all Octavias have had a price rise of £455 for every model, not a straight percentage rise.

Also the VAT off and 0% loan offer seemed to have some changes on the conditions.

Rather than having to have the car registered by 31st December it now has to be ordered by 31st October

I think that they may well be aware that they'll lose a load of buyers by having the end of December cut off point for the 0% finance.

People know that VAT will revert to 17,5% on January 1 2010 and that's inevitable so they'll just have to put up with the extra 2,5% increase on the car.

Doesnt a firm order lock in the VAT at the current rate? Cant see VAG taking the hit on the 2.5% revert on VAT come January....

I don't think it does, we need a legal eagle or tax-savvy Briskodian to tell us.

HM Revenue & Customs: Increase in the standard VAT rate

It's not 2.5% on the VAT inclusive price, but an additional 2.5% of the pre VAT cost.

Well looking at this HMCE statement:

If you issue a VAT invoice or receive prepayment before 1 January 2010 for goods or services which you will provide on or after that date VAT will normally be due at the 15 per cent rate. In certain circumstances VAT is due at a rate of 15 per cent on the date of issue of the VAT invoice or receipt of payment before 1 January 2010 and a supplementary charge of 2.5 per cent then becomes due on the 1 January 2010.

If you pay for it before January 1 2010, then you pay 15% VAT, if you pay for it on or after January 1 2010 then you'll be hit with an extra 2,5%.

Slightly OT, they've signed up to the extended scrappage scheme too.

You don't have to pay for it just get an invoice for it, wonder if a pro-forma invoice counts ?

When I queried the VAT thing at my local dealer, they said providing the dealership raised an invoice for the car before 1st Jan then you'd pay 15% VAT regardless of when the car is registered/paid for. It's the date on the invoice that's important.

Bottom line, get your dealer to invoice you before 1st Jan.

good news then, it will ease a few peoples minds

Dunno about cars but we have a new caravan on order. We were told we needed to have taken delivery and paid for it prior to the December cut off date to stick to 15% VAT. If we'd waited till January to collect it then it would have been 17.5% regardless of the fact we ordered it in September. Fortunately we got one from a batch being built in October (next batch of our model being built in Feb), so it should be with our dealer in November, after he does some mods and fits some extras we will collect mid November.

Hi guys

Although it appears that the date on the invoice is the important thing, its only half the story. The important thing is the "tax point" which with many things ends up being the same as the invoice date, but in this case will probably be for most people the time when they are supplied with the goods.

If the supply is after 1/1/10 then the vat rate is 17.5% which means that the vat included in the price will rise by 2.5% (although the increase is based on the net price, so you won't be paying 2.5% more on the total, more like 2.13%)

Most firms will have in their terms of sale document a clause which says "it's not our fault if vat rates change" so they're not obliged to absorb the increase for the customer. Some probably will absorb it for good customer relations etc but it will vary per dealer, since depending on how much in the way of orders they have that fall into this scenario, they may/may not be able to afford to do this.

My local dealer has said they'll honour their pre-vat increase prices

Not wanting to sound smug, but my fl will be here in 3 weeks so I'm fine!

Hope this helps

oh and ps if the dealer says "no it's ok, as long as the invoice is pre-31/12 then it's ok" well that's fine, as it's their problem when they get a nice visit from mr hmrc officer

I'm actually quie tempted by the 0% offer, it could release some funds to me

The VAT increase I was told, for delivery by year end. They hope in part to achieve this as the German and other countries scrappage schemes have ended. AS such they have more capacity to bring the uk's build times down... that's the theory.

If Skoda wanted to they could bring back the 3 year unlimited mileage warranty or better still 4 years LOL they would then sell like hot cakes once again

If Skoda wanted to they could bring back the 3 year unlimited mileage warranty or better still 4 years LOL they would then sell like hot cakes once again

Yes but that would get too many taxi's using them... nothing wrong with taxi drivers of course!

James.

I'm actually quie tempted by the 0% offer, it could release some funds to me

After a Yeti?

Yes but that would get too many taxi's using them... nothing wrong with taxi drivers of course!

James.

they would probably but an exemption for that lol but year 3-5 years unlimited would be great.

Most taxi owners like to pay for the vehicles over 4 to 5 years so a 4 years unlimited would give them piece of mind,