Apologies if this has already been covered but after enquiring at Rainsworth Skoda about the Yeti and its options I understand that the beast is available for order in Jan with the infamous disappearing Sunroof!

Question is with the VAT increase is it really worth the wait? (My Finance is out in November so need to make a decision shortly).

Answers on a post card...

Edited 18 July, 201015 yr by markmuddimer

Apologies if this has already been covered but after enquiring at Rainsworth Skoda about the Yeti and its options I understand that the beast is available for order in Jan with the infamous disappearing Sunroof!

Question is with the VAT increase is it really worth the wait? (My Finance is out in November so need to make a decision shortly).

Answers on a post card...

We went through this process when the VAT returned to 17.5%(maybe worth looking the posts up?). If you agreed with the Dealer that he should hold the VAT (possibly with a deposit paid up front) you could miss the 2.5% increase. Really everything is negotiable so go for a deal that suits you. I am sure that this will be a "bumper" Christmas for sales but January will be totally flat!

Great to hear it's returning!

I would expect that many retailers will be struggling for sales in January if they don't hold the vAT increase back from their customers - as happened when it recently returned to 17.5%

Chris

Great to hear it's returning!

I would expect that many retailers will be struggling for sales in January if they don't hold the vAT increase back from their customers - as happened when it recently returned to 17.5%

Chris

Well they would have to discount the car further as they cant not charge the new VAT rate ??

:no:

Well they would have to discount the car further as they cant not charge the new VAT rate ??

Not if it's paid for before the VAT change comes in. If the car is paid for afterwards, the reduction would be £2 in every £100 off the sale price.

Would it not be £2.50 in every £100 with vat going from 17.5% to 20% ?

Would it not be £2.50 in every £100 with vat going from 17.5% to 20% ?

Well it all depends what's being discussed, which isn't 100% clear from the thread.

But a 2.5% increase in VAT from 17.5 to 20% causes the retail price to rise from 117.5% of the ex-VAT price to 120%, which actually amounts to a 2.13% price increase. So a 2.5% VAT rise should give a retail price rise closer to 2% than 2.5%.

But if a dealer is going to hold the price at the original 117.5% retail but still pay 20% VAT to HMRC - as legally he must - then his ex-VAT price becomes 117.5/120, ie 97.92%. So he has forgone 2.08% of his previous ex-VAT receipts, which again is pretty close to 2%.

Would it not be £2.50 in every £100 with vat going from 17.5% to 20% ?

Yes. But 17.5% on £100 is £117.5 and 20% VAT on £98 is £117.6. A dealer may not be prepared to lose £360 on an £18000 car but this would be enough to adsorb the VAT increase.

There has been a lot of steam given off over the VAT increase and it will affect peoples lives BUT it is only a 2.5% increase. Same as the previous increase of 15% to 17.5%. Not good but not the end of the world.

There has been a lot of steam given off over the VAT increase and it will affect peoples lives BUT it is only a 2.5% increase.

I completely agree, but as per my sums above the (VAT-justifiable) increase in retail price is only 2.13%, not 2.5%, ie little more than 2%. Understandably, no-one - least of all me - wants to pay more for anything but isn't it important also to keep a sense of proportion - 2p in the pound just isn't an earth-shattering difference? There are much more important issues at stake - like why can't we have MDI on UK-spec Yetis or Alcantara seats on Elegance models?

There are much more important issues at stake - like why can't we have MDI on UK-spec Yetis or Alcantara seats on Elegance models?

I agree with that, but just as important is why can't we have electric memory alacantra seats on the elegance. Leather seats are great, and I've had them for the last 6 years on 2 BMW's and my current L&K, but in hot weather, you get a very sweaty back - seat feels as if the heating is on, and in the winter they are very cold.

Mike