20% VAT increase

[cirkz]

Hi,

I was wandering if anyone knows whether or not the VAT increase will affect my Scirocco R purchase.

I have put down a £1500 deposit already, but my estimated delivery date is January 2011.

I am not sure whether I will have to cough up extra even though the deal has already been made?!

[SciroccoSteve]

6 months waiting list on an R?!?!?

Thats a joke!

[nd10]

I would hope that as you have a 'contract to buy' that the VAT will already be at 17.5% and will stay that way

[trix]

Cirkz

terms of business are that you will pay VAT on your order at the current rate as on the day of invoice, ie if it is invoiced on the 1st Jan 2011 or after it will be 20% & a VIN & REG number is required for invoicing
therefore if you want to avoid this you NEED to speak to your dealer & get it in writing that your order will be at 17.5% VAT otherwise you WILL be liable for the additional
UNLESS VW decide to do as they did this year & hold the lower VAT rate for those who ordered before a certain date but I have not heard anything on whether they will or not yet.

hope that explains it

S

[*Sledge]

And speak to another dealer about getting your R. 6 month wait does not sound right at all.

[ashley1407]

It might be relevant to know that the new VAT rate only applies from the 4th of January so if you can angle to pick it up at the start of the month you'd be ok. However, as trix said, VAT is paid at the rate on the day of collection. Having said that, you could ask your dealer if you can pay for it before delivery although you have to accept the risk that comes with it. If the dealer was to fold then this could cause serious issues.

[trix]

you could ask your dealer if you can pay for it before delivery although you have to accept the risk that comes with it.

the dealer must have a VIN number & reg number before they can invoice, i'm sure some get around this but they shouldn't be.
the main issue with paying in advance is that you basically waive your right to inspecting the car before payment and delivery therefore you would have little or no negotiating room if there is a fault/problem with anything (bodywork/paint/wheels etc)

S

[cirkz]

The estimated delivery date on my invoice is 15th Jan 2011.

The sales guys reckoned it would be more like October though.

I'm going to give it a couple more weeks then start bugging them for updates.

[trix]

i'd suggest that you err on the side of caution cirkz & get it in writing that they will cover any VAT increase now, then if you don't need to use it great but otherwise you are covered.

S

[Gilez]

I would also call VW customer services with your Commission Number, and see what potential delivery date they may be able advise.

[shammy]

I ordered my scirocco on 1st May 2010 and is due for delivery in August. I have also financed a portion of the total cost for the car, with fixed payments for 12 months. My initial thoughts are that since the monthly amount has already been agreed, they will remain the same each month despite the VAT increase.

I'm going to check this with the dealership tomorrow, but what are your thoughts on this?

[martinjrose]

I ordered my R in November 2009 and am picking up tomo morning so been waiting 8 months. The VAT was 15% when I ordered and have managed to have that stick.

[trix]

Well Done That ^^^^^ Man!! very good result Martin & Very glad you are finally picking it up

S

[quality reflects]

I ordered my scirocco on 1st May 2010 and is due for delivery in August. I have also financed a portion of the total cost for the car, with fixed payments for 12 months. My initial thoughts are that since the monthly amount has already been agreed, they will remain the same each month despite the VAT increase.

I'm going to check this with the dealership tomorrow, but what are your thoughts on this?

Straight repayments would not be subject to VAT. That has already been paid on the original invoice. If it was a lease that would be different.