Hi folks,

Looking to order new vRS Occy on Monday morning with an anticipated 17/18 week delivery time.

Just need a little clarification on the VAT offer. The Dealer seemed to explain only half the story this morning.

I left a little confused. I won't be signing any order til I'm happy, Naturally.

If for any reason my car was delayed in being delivered due to the volume of exisiting orders place with Skoda, would I have to pay the VAT if it came in January?

Just a bit concerned that a December delivery time is very borderline for this VAT offer ending. The Skoda website states that the VAT free offer applies to all vehicles delivered before December 31st and may be subject to change.

If it did arrive in January then am I screwed?

Cheers

Ed

Basically yes, unless you get it in writing that if they fail to deliver before 2011 then they will pay the shortfall of the VAT.

The only other option would be to pay for the car in full before next year - but why would you do that?? (apart from saving the VAT)

And if I recall correctly, VAT increases to 20% on 4 January 2011

Hi,

You are right to be very very cautious over this. I spoke to several dealers about this over the last couple of weeks and as usual got mixed messages. I would suggest that you phone Skoda UK and ask them the question, noting who you are talking to and the date/time.

My understanding from the recent conversations I've had with the dealers is that gnerally they would look to you for the +2.5% if the car was delivered and/or paid for after 31/12/2010. (I won't add any additional complication about the HMRC rules about tax points which does influence the answer).

I was also caught out by this situation last year with the initial VAT free offering. I was looking for a car which ran the risk of being delivered after the end date of the offer, and the dealers told me that if it was ordered before that date they would honour the deal (this was verbally only). I was suspicious and checked with SKODA UK told me categorically that Skoda would NOT honour the deal if the car was delivered after the end date of the promotion. I therefore bought a stock vechicle which was not 100% the specification I wanted in order to ensure that it was delivered before the cut off date. In the event Skoda shortly thereafter changed their position. So I could have ordered the specification I wanted.

The point of my rigamarole is be careful. Most dealer sales contract contains the usual get out regarding changes in prices/tax changes before delivery so my advice you would be to get anything they agree about this explciitly in writing (as part of the order) to ensure they do not have any wriggle room. Unless you are careful you might end up liable for the whole 20% rather than just the additional 2.5%.

Edited 31 July, 201015 yr by Minimoke

I suspect you will still get the 17.5% off even after December but will probably need to pay 2.5% more due to the VAT rise after January.

Well I spoke to the salesman today who stated that nothing as such is put in the order form or contract (which it is basically) as its a government requirement and nothing to do with Skoda.

Slightly concerned about this as the Dealer as good as they have been with my p/x offer and OTR price still seem to want me to commit ASAP.

I can understand why as thats just a salesman doing his job.

But they are adamant that my car would be delivered early December.

Its just so close to the end of the offer I am tempted not to order one at all.

I could'nt afford to pay another £3500 in VAT. :'(

Get them to put their money where their mouth is and draft into the contract that the price they've offered is the price they'll ultimately charge :yes:

Hi:

Further to my earlier post what you might like to consider (and I think this would work) is to get the order written up with the full VAT price shown (with the VAT shown separately as normal practice on an invoice). Then show a reduction in price as a seperate line on the invoice explicitly labelled as "agreed discount" equivalent to the VAT figure. Note that you will then have to juggle the VAT/discount figure a bit as the VAT calculation would include any discount to end up with the currenetly advertised "vat free" price.

By this method you will always get the sum shown as the discount, but it would not protect you against a 2.5% VAT increase (or an increase in the basic vehicle price for that matter) without an explicit written agreement to the contrary.

What the dealer is telling you is a bit lame. The reality is that Skoda are offering a promotional discount. They are just labelling it as a "VAT free" offer as a bit of marketing fluff. If they won't agree to show the discount on the order then I would suggest you walk away from being liable for the whole VAT. I think we will see Skoda changing their position on this (as they did to me last time) - but obviously don't count on it.

Edited 31 July, 201015 yr by Minimoke

Also think of the resale/trade-in value. You - as person 'A' - having paid £3500 VAT could be competing against person 'B' with an identical car but fully paid for by the end of the year who didn't pay any VAT. Which person is going to lose out at resale time? You could be hit at both ends!

Tempted now not to order the bloody thing at all. :'( :'(

Hi:

Further to my earlier post what you might like to consider (and I think this would work) is to get the order written up with the full VAT price shown (with the VAT shown separately as normal practice on an invoice). Then show a reduction in price as a seperate line on the invoice explicitly labelled as "agreed discount" equivalent to the VAT figure. Note that you will then have to juggle the VAT/discount figure a bit as the VAT calculation would include any discount to end up with the currenetly advertised "vat free" price.

By this method you will always get the sum shown as the discount, but it would not protect you against a 2.5% VAT increase (or an increase in the basic vehicle price for that matter) without an explicit written agreement to the contrary.

What the dealer is telling you is a bit lame. The reality is that Skoda are offering a promotional discount. They are just labelling it as a "VAT free" offer as a bit of marketing fluff. If they won't agree to show the discount on the order then I would suggest you walk away from being liable for the whole VAT. I think we will see Skoda changing their position on this (as they did to me last time) - but obviously don't count on it.

The VAT free offer is not actually VAT free but a discount off the price that is the equivalent to VAT (it says it in the small print on the ad). Hence there is no need to juggle the figures since the discount is the equivalent to VAT and taken away from the cost of the car. The discount I believe comes direct from Skoda itself so may not be a lot the dealer can do to guarantee the price. IF Skoda charge the dealer £3.5k extra for the car then they are going to have to pass that on sine they are not going to loose a couple of grand on a sale.

PSM,

I think you and I are agreeing. Yes is is nothing more than a discount but you cannot just take a price reduction off the bottom line without affecting the VAT calculations. The discount itself is "VATable" (in your favour) so has tbe accounted for.

I went through all this 2 weeks ago with the dealer on the order with my wife's new Fabia. In fact they did the order/invoice showing the discount seperately without me having to prompt them.

Perhaps I'm explaining myself badly?

Edited 31 July, 201015 yr by Minimoke

Hi folks,

Looking to order new vRS Occy on Monday morning with an anticipated 17/18 week delivery time.

Just need a little clarification on the VAT offer. The Dealer seemed to explain only half the story this morning.

I left a little confused. I won't be signing any order til I'm happy, Naturally.

If for any reason my car was delayed in being delivered due to the volume of exisiting orders place with Skoda, would I have to pay the VAT if it came in January?

Just a bit concerned that a December delivery time is very borderline for this VAT offer ending. The Skoda website states that the VAT free offer applies to all vehicles delivered before December 31st and may be subject to change.

If it did arrive in January then am I screwed?

Cheers

Ed

I just looked at the Skoda UK web site for you, in the offers section clicked on the Octavia offer and below is a cut & paste job from there web site;

Don't forget the small print

*VAT reduction (based on the VAT rate applicable at 25th May 2010) available on all Octavia models. Reduction applied to the RRP including factory fitted optional extras.

Offers available for new car retail deliveries before 31st December 2010, may be varied or withdrawn at anytime and are subject to vehicle availability.

Model prices are the recommended 'On The Road' price, which includes delivery, 12 months Road Fund Licence, DVLA First registration Fee (at £55), and apply to the United Kingdom only.

So it seems the offer does NOT continue into 2011 - at present !

The dealer might have a diiferent arrangement so get it in writing from them!

BTW, I live in Jersey, we do not have VAT here, so does this mean I can demand 17.5% (or whatever the correct maths =!) discount off the RRP, I think I know the answer allready!

Enjoy life whilst you can!

If the dealer insists the VAT free deal is off come 2011 just say you are only interested in ordering a car if they can deliver before year end!

It is after all not an unreasonable expectation that they can supply a new car in 2010 given a five month lead time and if they estimate delivery as November for example the contract should say you can back out if they can't supply to or close to that timeframe.

Hi folks,

Looking to order new vRS Occy on Monday morning with an anticipated 17/18 week delivery time.

Just need a little clarification on the VAT offer. The Dealer seemed to explain only half the story this morning.

I left a little confused. I won't be signing any order til I'm happy, Naturally.

If for any reason my car was delayed in being delivered due to the volume of exisiting orders place with Skoda, would I have to pay the VAT if it came in January?

Just a bit concerned that a December delivery time is very borderline for this VAT offer ending. The Skoda website states that the VAT free offer applies to all vehicles delivered before December 31st and may be subject to change.

If it did arrive in January then am I screwed?

Cheers

Ed

Hi

Found this on Allam's Skoda website.

' With The chancellor's anouncement that VAT will go up to 20% per cent from 4th January 2011, there has never been a more important time to change your new car before the VAT Increases.

And to make the change that much easier, Any new Skoda Fabia( Excluding VRS), Octavia or Roomster ordered and registered before the 30th September 2010 will qualify for VAT free.

Don't forget the small print

*VAT reduction available on all Fabia models excluding VRS. Reduction applied to the RRP including factory fitted optional extras and is equivalent to the VAT applicable at the time. VAT is still applicable and will be shown on the customers invoice.

Offers available for new car retail orders taken and registered before September 2010, may be varied or withdrawn at anytime and not available in conjunction with any other offer '

Edited 31 July, 201015 yr by gizmob

I would suggest you get the order in asap to stand the best chance of getting the car delivered before the VAT increase. But I would email the dealership before signing the contract to confirm that you are only ordering on the basis that they supply before year-end. I'd also annotate the standard contract the same. You might be surprised - delivery may be much quicker.

Check out post #8

Here

I reckon this is a bit of a (self-made) mess on SUK's part.

Edited 1 August, 201015 yr by the_brace

Check out post #8

Here

I reckon this is a bit of a (self-made) mess on SUK's part.

Link doesn't work mate!

Link doesn't work mate!

Try it now

In normal circumstances the the discounted price (ie "VAT free") is agreed and contracted at the point of order, and the dealer should stick to that. If they are saying the discount is dependant on winning the Skoda delivery time lottery then they aren't going to sell many cars in the next few months!

However unless you've paid in full for the car before the January VAT increase you would have to pay the additional 2.5% VAT on the discounted price if delivery slips into 2011. That would be £300-£400 I guess but offset slightly at resale time by have a 2011 rather than Dec 2010 car.

I can't see Skoda continuing the "VAT free" offer under the new VAT regime as this is effectively offering a further 2% discount.

In normal circumstances the the discounted price (ie "VAT free") is agreed and contracted at the point of order, and the dealer should stick to that. If they are saying the discount is dependant on winning the Skoda delivery time lottery then they aren't going to sell many cars in the next few months!

That's exactly what they are saying - although, of course, they could introduce a replacement offer at any time, but in the meantime you can't even guess what you are going to pay for your car if you don't win the delivery time lottery.

The fact is that with the offer a Skoda is a decent buy - without it it is not - seemples!

How about signing a contract on condition that they deliver by 31st December 2010 or you walk away. That way if they don't meet their side of the bargain they are left with a car on their hands to sell on, which will be difficult if the prices have all been hiked

That's exactly what they are saying - although, of course, they could introduce a replacement offer at any time, but in the meantime you can't even guess what you are going to pay for your car if you don't win the delivery time lottery.

The fact is that with the offer a Skoda is a decent buy - without it it is not - seemples!

Well I guess Skoda's marketing dept have got August to think something up, but I wouldn't be ordering at the moment without a get out clause for delivery slipping in to 2011. As I'm looking at three months delivery for my VRS including the factory summer shutdown January delivery from ordering "now" does seem a bit mad. Unless everyone is ordering to beat the VAT rise of course!

How about signing a contract on condition that they deliver by 31st December 2010 or you walk away. That way if they don't meet their side of the bargain they are left with a car on their hands to sell on, which will be difficult if the prices have all been hiked

and don't pay a big deposit...£250 should be sufficient.

It's the equivalent of no VAT, VAT is still paid on the car they are basically given you a 17.5% discount and the deal is done when you shake the sale persons hand (ok sign the agreement)...........

Edited 1 August, 201015 yr by Hyperviper34