When I ordered my yeti (with panoramic sunroof :'( ) little did I realise quite how long I would be waiting for the beast to appear - I still don't have a build date.

I have my original agreement with my dealer which quotes me a particular price. Now, given that it is quite possible that VAT will go up to help clear the National Debt, do I need to worry about being hit with a price rise? Should I talk with SUK Customer Services and seek formal assurances that the maximum price that I'll pay it the one on the bottom of the piece of paper from the dealer?

Does anybody else have experience in this area? Are you just hoping that you won't be hit in the event of a price rise or have you taken steps to protect yourself?

I ordered my Octavia in September (15% VAT) and paid in January when it arrived (17.5%).

I paid the agreed price and the discount level on the final invoice was changed to reflect this. Don't forget, it's not actually VAT free, the VAT has to be paid. You are getting a discount equivalent to the rate of VAT...

May still be worth getting something in writing though

VAT is applied "at the point of sale" but as said dealers will usually amend discounts to honour the originally agreed price.

Edited 12 May, 201016 yr by slider

I would have the same concern if the VAT increase was to be applied withing the next couple of months but the BBC News has just indicated that this is likely to be implemented next year.

I hope this is true although my sales agreement does not mention VAT increases (or decreases) but does mention import prices!

I guess they might give a long notice period for the VAT increase in order to stimulate some buying??

ernieb

There's some guidance from HMRC here: http://www.hmrc.gov.uk/vat/forms-rates/rates/rate-rise-guidance.pdf

That document relates to the reversion back up to 17.5% at the end of 2009, but I would guess that an increase later this/next year would follow similar rules.

Basically, it appears that the deposit and the final payment are treated separately. If the VAT rate changes between the two payments then you pay whatever is in effect at the time the payment is made. If VAT goes up you unfortunately have to pay more. Of course, if the VAT rate went down you would pay less :-)

It may be that the dealer is willing to cover any VAT increase in the interests of getting/keeping your business - but I don't think they *have* to legally. Probably worth getting something agreed in writing to be on the safe side.

I would have the same concern if the VAT increase was to be applied withing the next couple of months but the BBC News has just indicated that this is likely to be implemented next year.

I hope this is true although my sales agreement does not mention VAT increases (or decreases) but does mention import prices!

I guess they might give a long notice period for the VAT increase in order to stimulate some buying??

ernieb

Anyone like me who recently ordered a Yeti with a sunroof might well get the car next year at this rate lol

Sigh......I hope they are worth it !

When I ordered my yeti (with panoramic sunroof :'( ) little did I realise quite how long I would be waiting for the beast to appear - I still don't have a build date.

I have my original agreement with my dealer which quotes me a particular price. Now, given that it is quite possible that VAT will go up to help clear the National Debt, do I need to worry about being hit with a price rise? Should I talk with SUK Customer Services and seek formal assurances that the maximum price that I'll pay it the one on the bottom of the piece of paper from the dealer?

Does anybody else have experience in this area? Are you just hoping that you won't be hit in the event of a price rise or have you taken steps to protect yourself?

So, much to my frustration but not surprise, SUK Customer Service calls me to tell me that the build date of my beastie has been pushed back (again). They've verbally agreed that as I ordered the car at the begining of March that they will ensure that what ever happens to taxes (VAT or other) the maximum price that I'll pay is the price I agreed with the dealer. I've asked for that in writing. I dont care how the dealer and SUK make up any difference should it arise - that is their problem.

So, for others that are caught up with the long delays due to sun roof issue, you might want to seek similar assurances.