How to beat the VAT increase - Some help, but not quite there
• Nissan Micra – mystery shopper
We have been issued an alert to say that if the new Micra is ordered by the close of business on the 30th of November 2010 the customer will not get charged the extra 2.5% VAT. The delivery date needs to be showing after the 4th of January, 2011 and the car has to be registered before the 31st of March, 2011.
I hope this clarifies how Nissan will be supporting and treating VAT during this changeover.
• Renault Megane CC – mystery shopper
A car ordered now could potentially be matched to a vehicle in resource and would therefore be deliverable. However, were you to order a colour/option not currently available, as long as the order was placed prior to 31/12/2010, and couldn't be delivered until the new year, between 04/01/2011 - 31/03/2011 we would hold the price and level of VAT for you.
• Volkswagen Golf – mystery shopper
As long as the vehicle is ordered from Volkswagen before the 30th November 2010 then the VAT is protected at 17.5%. However if the vehicle is available to deliver before the end of December 2010 then it would need to be delivered or it would revert back to the rate of 20%.
• Peugeot 3008 – mystery shopper
I have discussed your predicament with Peugeot and providing delivery was taken within the first few weeks of the New Year we would be able to guarantee the price quoted.
I would only need a deposit of £100 to place an order to secure you a 3008 for delivery in the new year.
• Ford Grand C-MAX – mystery shopper
I have spoken to my boss and he has said that he will pay the extra 2.5% VAT, so the original price quoted still stands for 2011, as long as it is ordered before the end of November.
• Honda Civic – mystery shopper
To make sure you don’t pay the additional VAT, you would have to place an order before the 20th of December and have collected the car before the 31st of January.
What Car? says – some help at least, but delivery can be up to six months after a VAT invoice is raised and this could be as late as January 3, not November or even December. The Sutton Coldfield example shows how dealers could be eating into their own margins if they really aren't invoicing to avoid the purchase being liable to 20%, but are offering it at 17.5%-based negotiations.
• Skoda Yeti – mystery shopper
The only way you can avoid the VAT increase is to place a order and we will price protect it for you
• Volkswagen Tiguan – Mystery shopper
No trouble with the quotation. If you order by November 14th then you will be VAT protected on the order.
What Car? says – you do need to place an order, but if the dealer raises a VAT invoice it doesn't have to come down to them 'price protecting', it simply means the Treasury gets less in tax and it doesn't cost you, or the dealer, a bean. If they don't raise the invoice they would have to eat into their margin to offer a car on which 20% VAT is due but at price negotiated at 17.5%.
• Mercedes E-Class Estate – mystery shopper
The unfortunate part if you delay to the point of delivery taking place after January 3rd is that the VAT increase will be applied. There is no way around this, even if the vehicle was paid for because it works from the point of registration and it would show that you would have not have taken delivery of the goods.
We only have a few days remaining to get a vehicle to your exact specification by the end of this year as the factory options will then be frozen and unable to be changed.
What Car? says – it is true that you can't ask for delivery to be delayed, but it isn't true that the VAT is worked out at registration – it's calculated when a VAT invoice is raised. There is then up to six months for the car to be delivered according to the normal build times.