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Model specific boards => Golf mk6 => Topic started by: WHITEY20 on 05 January 2011, 20:10
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Those who placed orders before 30th november 2010 and havent taken delivery of their car before Jan 4th may receive 2.5 % discount from VW. I ordered end of september 2010, have been given build week 4 but not taking delivery until March. I spoke to the dealer and they're a bit unsure where I stand. If I took delivery straight away I'd qualify, It's the waiting until March thats the problem. But I have to as I have an "11" reg plate ready. Aslo a potential saving of arround £750!
Any views? :huh:
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I think they have to invoice you before 4th Jan ? and you have to pay for it, but if its on finance i can't see finance Co releasing the cash if you havn't taken delivery. :sad:
I cant see them standing the 2.5% rise as you say its £750 speak to them and see if there is a way around it
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I think they have to invoice you before 4th Jan ? and you have to pay for it, but if its on finance i can't see finance Co releasing the cash if you havn't taken delivery. :sad:
I cant see them standing the 2.5% rise as you say its £750 speak to them and see if there is a way around it
I don't see why you'd have to pay for it. VAT can be charged at the old rate and not be paid immediately as long at was invoiced at the correct VAT rate.
The Invoicing date is key to this issue.
Jim
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Yes but Jim if it was invoiced now, VW would want the cash now not in March thou would'nt they ? :sad:
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Yes but Jim if it was invoiced now, VW would want the cash now not in March thou would'nt they ? :sad:
Not necessarily, there isnt any reason why they couldn't invoice now with payment terms set to the date of the delivery.
This is legally acceptable, isnt great for VW but not as bad as some might think.
Jim
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I had this discussion with my dealer when ordering at the start of October. They told me if you take delivery in January VW would stand the 2.5%. Any time after that and I would have to pay the increase. I even offered to pay for the car in December and not take delivery until March but they turned me down. Apparently VW invoice the dealer for the car when it is registered so registration in March would give a 20% VAT invoice. Daylight robbery.
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Those who placed orders before 30th november 2010 and havent taken delivery of their car before Jan 4th may receive 2.5 % discount from VW. I ordered end of september 2010, have been given build week 4 but not taking delivery until March. I spoke to the dealer and they're a bit unsure where I stand. If I took delivery straight away I'd qualify, It's the waiting until March thats the problem. But I have to as I have an "11" reg plate ready. Aslo a potential saving of arround £750!
Any views? :huh:
I'm in a very similar position, but placed order end of Nov so not expecting to see it until March/April. No firm build week yet.
I went over the scenario you describe with my dealer and they gave similar response.
The sales contract has been drawn up based on 17.5%.
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I don't know what 'payment terms' VW operate under. Is it 30 days, 3 months? I think it might be 30 days. Check their payment terms.
If invoiced now, and if the invoice has to be settled in 30 days, then you should avoid 20% VAT if payment is made within this time period.
You may then register and collect the car when you so wish, dealer being agreeable.
Tricky.
Nothing is certain but Death and Taxes.
Where's RED? He's the accountant.
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yes i remember now the same conversation with the dealer when it went up from 15%
VW invoice the dealer for the car when it is registered, so the dealer will have to pay top whack in vat, surely they will pass it on ?
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yes i remember now the same conversation with the dealer when it went up from 15%
VW invoice the dealer for the car when it is registered, so the dealer will have to pay top whack in vat, surely they will pass it on ?
I think most dealers took the hit when it went from 15% to 17.5% did they not?
I'd imagine if they wanted the car sale that much they would just accept it.
I'm sure VW sent a memo out regarding taking the VAT increase when it rose from 15%. That there was a cut off point that they would pay it due to the long wait on their cars at the time.
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Hmm good point, wonder how my company will deal with this who ordered mine in Sept for May delivery! Probably won't effect me as my budget/allowance is based on Exc VAT. I'll keep quiet for now seeing as the car has been agreed and ordered!
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This was written in Auto Express and might be of interest.
'If you put down a deposit for a new car before 4 January, that will incur VAT at 17.5%. Pay the balance on collection after that date, and this will be levied at 20%. Ultimately this is for the dealer to worry about because the dealer has to account for the transaction to the authorities. If you do get an invoice to pay the full amount for the car and it is dated earlier than 4 January, it should say 17.5%. That document will cover the whole transaction, even if it is split into a deposit and balance.
If you're buying a new car between now and 4 January, make sure the sales staff clarify which VAT rate you will be paying. As a general rule, if the deal has been done and fully paid for before that date, it should be levied at the lower rate of 17.5%.
How you pay for a car can make a difference. For example BMW told us that if a customer is using cash or arranging their own finance and the deal is agreed before 4 January, they will pay 17.5% VAT regardless of the delivery date. But, if they buy the car via BMW Financial Services (BMWFS), the VAT rate is determined by the date BMWFS pays the dealer.The date on the customer's finance arrangement is irrelevant.
Some manufacturers have announced a customer 'price promise' if a new car is ordered before 4 January but not delivered until after that date. It means that they will honour the 17.5% VAT for your transaction. Check whether this applies to you.
If in doubt clarify with the dealer and get something in writing to confirm exactly what sum you will be paying and what rate at which VAT will be charged'.
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I ordered at the end of October and the dealer told me that he would guarantee the 2010 price. That includes VAT at 17.5% and 2010 list prices, which are apparently increasing in 2011. They might have to invoice at 20% but then offer a discretionary discount of 2.5%. He also promised to fill the tank for me. Not much of a deal, but it's something.
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He also promised to fill the tank for me. Not much of a deal, but it's something.
That might be the deal of the century if the fuel prices continue to go the way they are :grin:
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Im hopefully taking the solutions package and signing up in march, so theres no question it should be charged at 20%, I just want the 2.5%discount from VW for ordering early well before the VAT increase. oh and the full tank of fuel sounds good. Dealer told me if I dont qualify they'd give me an extra £200 on my p/x which would soften the blow. :laugh:
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This brings back painful memories of my car from last year. I had the same problem but i had a dealer who was unhelpful and a dumb ass basically. :evil:
You have to arrange it with VWcustomer care to get the discount. They have to talk to there dealer sales department(or what ever there called, i would have listed it in the august order thread at the time) They have to approve it as its them who invoice the dealer when the car arrives.
I tried all these invoice early, pay early etc etc but i got no were and just meessed about for 7 months.
Its VW you need to speak to not your dealer, as its them who invoice the VAT to the dealer and them who have the offer on. Your dealer just says "Computer says no"
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We are going through the same strife, basically from what I understand it as a sales person for VW, if the car was not deliverable last year then VW put a 2.5% bonus into our pot to counter act the fact we will have to discount it by another 2.5% to counter act the VAT increase. Regardless of when it arrives, it was never communicated to us that the customer must take delivery of the car as soon as it arrives as I have loads of cars turning up in February ready for March handovers.
We dont get invoiced for a car till it arrives into stock physically so you cant invoice a car that does not exsist officially yet.
2.5 per cent order bonus
All Retail orders must be placed by 30 November and arrive in the UK after 14 December to qualify
Qualifying cars must be sold and registered after 3 January
The 2.5 per cent bonus will be paid for all qualifying vehicles at point of customer delivery
The offer will be advertised at volkswagen.co.uk, so you will need to opt in to participate
Cars arriving on or before 14 December must be sold and registered in 2010 to avoid the increase in VAT. These cars will not qualify for the 2.5 per cent order bonus.
This offer is not a VAT ‘price protection’, it is a 2.5 per cent discount
The 2.5 per cent discount is on the basic retail price (excluding VAT)
Only orders that are not deliverable in 2010 will attract the 2.5 per cent discount
Payments will be made on delivery/sale
This is available on retail sales only
All models are eligible
Wherever possible, orders should be placed from stock
Retailers are required to opt in to this offer and agree to sell qualifying vehicles with a 2.5 per cent discount on the basic recommended retail price (excluding VAT). Retailers are free to discount further from this at their discretion
Volkswagen UK reserves the right to change/withdraw this offer as required
Hope this helps anyone.
PS dont tell them I put this up : )
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Cheers Evo this gives me a good idea. My purchase is from Inchcape/Chester (nowhere near my home by the way) so I assume the same rules apply. Obviously its VW giving the discount so doesnt make any difference to dealer, they're just passing it on. The sales lady at the dealer has been very helpfull but is not certain on the outcome. Thanks again and i'll keep you posted oh and wont mention any names/companies :lipsrsealed:
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I got VAT protection written in to the order documentation. Order date september 2010 - build date week 12 2011
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Build week 4 spounds out of the question now. I've been informed that if it arrives late feb they will give me the 2.5% discount. I think its so the dealer is out of pocket long before I take delivery. Obviously they get invoiced when delivered. Still not 100% sure how it works but still hopefull for the £699 discount. :smiley:
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:laugh:
I qualified anyway. 2.5% discount. yipee! £699 to spend on mods well an RNS 510 anyway