Shhhh......This is top secret.......Shhhhhh

[marcusfordus]

Anyone else have a car now " Overdue " or am I going to be the 1st to see what the actual VAT deal is really going to be on the 4th ?

[Auric Goldfinger]

Hopefully the 0% 2 year finance will still be on next year too!

This deal ended 31 Dec 2010, so my dealer told me

I was offered 2.5% flat rate

Edited 1 January, 2011 by Auric Goldfinger

[scottpcs]

This deal ended 31 Dec 2010, so my dealer told me

I was offered 2.5% flat rate

Same with my dealer. The 0% finance offer doesn't look likely to continue and I too was told it'd be 2.5% flat rate from now.

[jcm]

Same with my dealer. The 0% finance offer doesn't look likely to continue and I too was told it'd be 2.5% flat rate from now.

Orders taken before 31st Dec will still carry the 0% finance if you asked for it and got the OK from Skoda finance.

John

[scottpcs]

Orders taken before 31st Dec will still carry the 0% finance if you asked for it and got the OK from Skoda finance.

John

My dealer told me that if I changed my deal from what I have to the VAT free offer then it would depend if Skoda were still doing the 0% finance as to whether I could get it or not.

He said I wouldn't automatically be entitled to the 0% if I changed my deal but obviously I would if I kept my original deal I made at the time of ordering in November. I briefly argued that because I'd ordered the car in 2010 (conditions of the offer were that the car be ordered before December 31st 2010) then the 0% finance offer should still apply regardless but this was met by a large shake of head...

[jcm]

My dealer told me that if I changed my deal from what I have to the VAT free offer then it would depend if Skoda were still doing the 0% finance as to whether I could get it or not.

He said I wouldn't automatically be entitled to the 0% if I changed my deal but obviously I would if I kept my original deal I made at the time of ordering in November. I briefly argued that because I'd ordered the car in 2010 (conditions of the offer were that the car be ordered before December 31st 2010) then the 0% finance offer should still apply regardless but this was met by a large shake of head...

Looks like something else to sort out with my dealer next week !!

John

[JamesDensley]

Confusing times. Been and looked over my paper work, there was No VAT on the car OR On the options, with the finance having the base rate of 2.5% over three years with a £500 deposit.

The dealer said the car had to be ordered before the 31st December to qualify for VAT Free.

[jcm]

Confusing times. Been and looked over my paper work, there was No VAT on the car OR On the options, with the finance having the base rate of 2.5% over three years with a £500 deposit.

The dealer said the car had to be ordered before the 31st December to qualify for VAT Free.

Ordered before 31st of Dec for VAT free - sounds a bit strange.

John

Edited 1 January, 2011 by jcm

[Auric Goldfinger]

car had to be ordered before the 31st December to qualify for VAT Free.

Vat Free starts 04 Jan 11

[JamesDensley]

Vat Free starts 04 Jan 11

mines ordered, i'm happy with the price works out at not paying VAT (17.5%) on both the car and the options. Not sure if this was a deal with the dealership or network wide. i'l pop in tomorrow and find out.

Sounds like Skoda will be getting alot of orders on the 4th !

[scottpcs]

Vat Free starts 04 Jan 11

My thoughts exactly.

How can the dealer tell you that the car qualifies for no VAT when the vRS is specifically excluded from the current offer? As others have said, the no VAT that applies to the vRS starts on 4th January 2011 and doesn't necessarily include options either, depending on what Skoda finalise in the details.

I can't believe it's an internal dealership thing either as no dealer in their right mind are going to discount a car by 17.5%, never mind the options by the same margin!

Something we're all missing here I'm sure, if only in this case.

[JamesDensley]

My thoughts exactly.

How can the dealer tell you that the car qualifies for no VAT when the vRS is specifically excluded from the current offer? As others have said, the no VAT that applies to the vRS starts on 4th January 2011 and doesn't necessarily include options either, depending on what Skoda finalise in the details.

I can't believe it's an internal dealership thing either as no dealer in their right mind are going to discount a car by 17.5%, never mind the options by the same margin!

Something we're all missing here I'm sure, if only in this case.

not sure,

total for the car ive ordered is £17,340 OTR (built using skodas car configurator),

im paying £14,823 (17.5% off the total price)

17.5% of 17,340 works out at £2577.

£2577 + £14,823 = £17,400.

Edited 1 January, 2011 by JamesDensley

[scottpcs]

not sure,

total for the car ive ordered is £17,340 OTR (built using skodas car configurator),

im paying £14,823 (17.5% off the total price)

17.5% of 17,340 works out at £2577.

£2577 + £14,823 = £17,400.

I'm not denying that you've got your car for a bargaintastic price, however, it's not quite as simple as taking 17.5% off the total OTR price and hey presto there's your VAT element.

The OTR price is made up of several things including the cost of the car itself, road tax, delivery charge, first registration charge etc. As an idea of how much these individual things make up the total cost of the OTR price, the delivery charge alone is something in the region of £600. Also not everything that makes up the OTR price is VAT chargeable at 17.5% or even at all (road tax is outside the scope of VAT for example.)

However your dealer has worked the sums out, I'm baffled as to where he's making any money at all if he's simply knocked 17.5% off the grand total and called it the VAT - the actual total you're paying includes much more than a simple VAT discount. Either he's made an error of astronomical proportions or there's clearly something he knows that no-one else, not even another dealer in the UK, does.

Edited 1 January, 2011 by scottpcs

[marcusfordus]

17.5% of £17340 is not 2577

[JamesDensley]

17.5% of £17340 is not 2577

Rough Maths.... Road Tax and Delivery charge are no VAT exempt as ScottPCs explained

[scottpcs]

17.5% of £17340 is not 2577

You're right, it's actually £2582.55 to be exact :p

Delivery charge is VATable but the point I was making is that the VAT may not be discounted from the OTR elements or at least some of them. Road tax is exempt from VAT and other things may be exempt too such as 'showroom tax' which doesn't apply to the vRS but will apply to other models and engines that produce more CO2.

[JamesDensley]

You're right, it's actually £2582.55 to be exact :p

Delivery charge is VATable but the point I was making is that the VAT may not be discounted from the OTR elements or at least some of them. Road tax is exempt from VAT and other things may be exempt too such as 'showroom tax' which doesn't apply to the vRS but will apply to other models and engines that produce more CO2.

Gotcha, il get my order form and order list scanned tomorrow and upload it for you.

ah, i calculated £2577 because im not being charged for floor mats. , with floor mats will be £2582.

Edited 2 January, 2011 by JamesDensley

[marcusfordus]

Roll on Tuesday when we get to the bottom of all this.

I'll call in sometime during the day and sort it face to face.

[Auric Goldfinger]

17.5% of £17340 is not 2577

I'll think you'll find that the VAT will become 20% 0n the 4th Jan 11

[scottpcs]

I'll think you'll find that the VAT will become 20% 0n the 4th Jan 11

Yes it will but at the time of ordering it was 17.5%. If I don't change my deal then that's the effective rate of VAT I'll be charged.

If we all take the new VAT free offer from 4th January 2011 then it will be at the rate of 20%.

[MCP]

If you visit centralskoda.co.uk they are now advertising the NO VAT OFFER on the Fabia VRS with 7.2 APR (Solutions) and 2 years free servicing. I also rang another dealer a couple of days ago and they were very coy about the offer but basically said the no VAT offer will be available from 4th Jan. The lady I spoke to was also amazed that other dealers were doing the offer before Jan 4th and said Skoda wouldn't be very happy about this!!!

I had a test drive a month ago in the Fabia VRS and was really impressed with the car, the engine and gearbox combo was amazing and ever since I've been thinking about getting one. The offer is a no brainer as far as I'm concerned and makes the Fabia VRS an absolute bargain for what you get. There is nothing else out there that can compete with it for the money. I was also looking at the Abarth 500 but it just can't compete with the value and power of the Skoda, my mind is now made up!

[marcusfordus]

£13,485 being the retail price

Now that is a good deal cheers MCP for that, more ammo for Tuesday

Edited 2 January, 2011 by marcusfordus

[mannyo]

But the offer only applies to those cars bought on Finance or on PCP, in which case you have to add in all the interest they charge for the duration of the loan agreement which over 3-4 years could be a lot more than you are saving.

For a full breakdown see the link on centralskodas website, using this example you end up paying back more than £15,500 with additional penalties for excess mileage of 4.8P per mile over 10,000PA.

http://www.centralsk...oda-finance.pdf

The only official offer on Skoda UKs website is a 0% finance deal on the Fabia vRS, no mention of VAT free. This offer is actually better, as there is no mileage penalty and the price difference at the end of the 2 years is £100.

[MCP]

From what some of the guys are saying the 0% offer has finished and been replaced with a flat rate 2.5%! You do have have to put half down as well with 0% offer, not everybody has got that kind of money!!! Not paying VAT is a big incentive whether you decide to go with Skoda Solutions or the flat rate offer!!

No problems marcusfordus.

[scottpcs]

The only official offer on Skoda UKs website is a 0% finance deal on the Fabia vRS, no mention of VAT free. This offer is actually better, as there is no mileage penalty and the price difference at the end of the 2 years is £100.

Hardly - the 0% offer is just that, nil, nothing, not a penny of interest and no documentation fees either. If the car cost £15500 OTR then that's exactly what you'll pay whether it be straight out or on the 0% offer.

I'm particularly fortunate in that I can afford to put half the money in and take the finance offer but if it came to it I could also afford to buy the car outright. It would mess up my cash-flow quite severely if I do that though so the finance deal on offer must be attractive enough to warrant spreading it out over 2 years. I can deal with 2.5% interest, especially if 2 years servicing are included and I also get the VAT offer on the whole smash not just the car with no extras or all the little extras that make up the OTR price.

I understand that it's not so simple for a lot of people though as not too many can afford to put up thousands down on a new car. It also depends on how much your trade-in is worth as to how much initial outlay you can afford.

When looking at finance deals though I'm only ever interested in how much interest I'll end up paying over the term. Percentage rates mean absolutely nothing to anyone when in terms of APR, only flat rates have any bearing on the actual amount being paid back. The number of dealers who've proposed an 'attractive' finance package to me over the years that carry low rates of APR but actually mean I'd be paying thousands in interest on a relatively small loan over typically 3 years is astounding.

My advice is to take your time when reading over these deals and work everything out yourself, don't rely on the dealer to do it for you as they'll only dress it up to make it look like the best offer you've ever seen in your life!