Looks like we have a VW price fix guarantee on no deal Brexit charge?

[Ladymuck]

Just got an email from DTD saying VW will price protect any orders from any price increases from Brexit no deal.
Am i right to assume this applies to existing orders as well ?? Has anyone seen anything else on this?

 

[CampervanTime]

This could be really good news - assuming they are referring to any import taxes.

This to me feels like VW trying to ensure there aren’t a load of cancelled orders and at the same time put a financial limit on the risk of a no deal. By giving people nearly a month notice to get their order in too, at least they can’t be accused later of not giving people a chance to act accordingly.

I must admit, back in March 2018 when we got our T6 Ocean it was delayed to dieselgate/software fixes being applied and VW were EXCELLENT to us. They lent us a Cali Ocean for 6 weeks and gave us compensation in money too.

 

[Ladymuck]

This could be really good news - assuming they are referring to any import taxes.

This to me feels like VW trying to ensure there aren’t a load of cancelled orders and at the same time put a financial limit on the risk of a no deal. By giving people nearly a month notice to get their order in too, at least they can’t be accused later of not giving people a chance to act accordingly.

I must admit, back in March 2018 when we got our T6 Ocean it was delayed to dieselgate/software fixes being applied and VW were EXCELLENT to us. They lent us a Cali Ocean for 6 weeks and gave us compensation in money too.

Yes sounds sensible to remove the risk of cancellations but put a time limit on the promise to limit their liability.
There's going to be a lot of relieved Cali owners to be (including me!) if this is the case

 

[CampervanTime]

Tell me about it!!

 

[VWCoastbusters]

I'm not convinced. It talks about VW price increases and a Brexit-related import duty is not a VW price increase. Certainly the implication looks positive and it would be bad PR if this was deliberately misleading. But I think I'll wait to see

 

[Ladymuck]

I'm not convinced. It talks about VW price increases and a Brexit-related import duty is not a VW price increase. Certainly the implication looks positive and it would be bad PR if this was deliberately misleading. But I think I'll wait to see

Yes it's very misleading if it isn't the case, we'll see ..

 

[Ladymuck]

But it does refer to price increases as a result of a Brexit no deal so I am hopeful !

 

[VWCoastbusters]

But it does refer to price increases as a result of a Brexit no deal so I am hopeful !

I'd like to be hopeful. We would definitely have to cancel our order if there were additional charges

 

[Scoots]

I'm not convinced. It talks about VW price increases and a Brexit-related import duty is not a VW price increase. Certainly the implication looks positive and it would be bad PR if this was deliberately misleading. But I think I'll wait to see

Why would they mention Brexit if they're not covering the duty?

 

[VWCoastbusters]

Why would they mention Brexit if they're not covering the duty?

I agree but interesting they've not referred it it in accurate terms 'import duty' making it vague. I'm hopeful but I'd like more clarity before I feel confident

 

[ReinholdMessner]

The Duty would be chargeable by HMRC on VW (or the importer, which we're all assuming is VW). The only way VW can recover that cost incurred by them is through a "price increase" (see next paragraph) payable by the customer, so I'd be fairly comfortable saying that this is intended to cover the possibility of a Duty cost.

VW can't charge "Duty" to a customer, because that's something the government imposes on an importer. What VW can do is make the customer pay *an amount equal to the Duty* through the price rise. So yes, price rise refers to import Duty cost suffered by VW as a result of no deal Brexit.

 

[Sad]

Why would they mention Brexit if they're not covering the duty?

Because they're talking about a price increase by VW because of Brexsh1t rather than a government imposed import duty...

 

[VWCoastbusters]

E

The Duty would be chargeable by HMRC on VW (or the importer, which we're all assuming is VW). The only way VW can recover that cost incurred by them is through a "price increase" (see next paragraph) payable by the customer, so I'd be fairly comfortable saying that this is intended to cover the possibility of a Duty cost.

VW can't charge "Duty" to a customer, because that's something the government imposes on an importer. What VW can do is make the customer pay *an amount equal to the Duty* through the price rise. So yes, price rise refers to import Duty cost suffered by VW as a result of no deal Brexit.

I hope you're right, and excuse my ignorance if this is a stupid question, but I've often faced import duty from purchases abroad that I've had to pay because I chose to import them. In this instance, I've ordered a van from abroad, so how is it different?

 

[ReinholdMessner]

E

I hope you're right, and excuse my ignorance if this is a stupid question, but I've often faced import duty from purchases abroad that I've had to pay because I chose to import them. In this instance, I've ordered a van from abroad, so how is it different?

I'm guessing but in that case I'd assume it must be because you were the importer. Did you instruct a Customs Agent to clear the goods through customs? If yes, you were presumably the importer who was liable for the Duty, whereas with the Cali you aren't the importer. [Alternatively, the shipping agent in your previous cases, e.g. a DHL, might pay the actual Duty via their 'deferment account' with HMRC, then send you a bill for an amount equal to the duty.]

I keep using the expression "an amount equal to the Duty" because it's probably the important distinction. In the case of the Cali, VW is anticipating that the Duty payable by them to the UK Government may increase from nil to something, and they've referred to protecting against "price rises" in the OP's email because VW and their dealers are saying they'll absorb the cost of Duty imposed on them by HMRC and not pass it on to you through a price rise.

Sorry if I'm repeating myself, it's only because I've had CNN on for about 3 days straight so repetition has become normality.

 

[DTD]

I agree but interesting they've not referred it it in accurate terms 'import duty' making it vague. I'm hopeful but I'd like more clarity before I feel confident

The following note is on the VW California page on the Drivethedeal website.

In the event of a no-deal Brexit, import duties will be imposed on the import prices of new cars. This will lead to manufacturers recovering this duty by increasing the prices of new cars imported to the UK.

Volkswagen will protect the price on any VW California order placed before 2nd December 2020. This means that if any import duty is imposed the resulting price increase will not be passed to the customer, provided they have placed an order before the 1st December 2020 to give the dealer time to process your order.

 

[Ladymuck]

E

I hope you're right, and excuse my ignorance if this is a stupid question, but I've often faced import duty from purchases abroad that I've had to pay because I chose to import them. In this instance, I've ordered a van from abroad, so how is it different?

VWCoastbuster, if you currently live in the UK or anywhere in the EU and buy stuff from EU countries then no import tax applies because of EU free trade. If you buy stuff from outside the EU then import tax may apply as there is no free trade agreement, which sounds like what you are paying ? Once UK leave the EU on 31 Dec then the EU free trade agreement no longer applies so you have to pay the applicable import duty on imports from the EU as well which didn't exist when UK was a member. Is that what you are getting at ?

 

[VWCoastbusters]

I'm guessing but in that case I'd assume it must be because you were the importer. Did you instruct a Customs Agent to clear the goods through customs? If yes, you were presumably the importer who was liable for the Duty, whereas with the Cali you aren't the importer. [Alternatively, the shipping agent in your previous cases, e.g. a DHL, might pay the actual Duty via their 'deferment account' with HMRC, then send you a bill for an amount equal to the duty.]

I keep using the expression "an amount equal to the Duty" because it's probably the important distinction. In the case of the Cali, VW is anticipating that the Duty payable by them to the UK Government may increase from nil to something, and they've referred to protecting against "price rises" in the OP's email because VW and their dealers are saying they'll absorb the cost of Duty imposed on them by HMRC and not pass it on to you through a price rise.

Sorry if I'm repeating myself, it's only because I've had CNN on for about 3 days straight so repetition has become normality.

Me too! I know the feeling. Thanks for explaining.

 

[VWCoastbusters]

VWCoastbuster, if you currently live in the UK or anywhere in the EU and buy stuff from EU countries then no import tax applies because of EU free trade. If you buy stuff from outside the EU then import tax may apply as there is no free trade agreement, which sounds like what you are paying ? Once UK leave the EU on 31 Dec then the EU free trade agreement no longer applies so you have to pay the applicable import duty on imports from the EU as well which didn't exist when UK was a member. Is that what you are getting at ?

Exactly.

 

[VWCoastbusters]

The following note is on the VW California page on the Drivethedeal website.

In the event of a no-deal Brexit, import duties will be imposed on the import prices of new cars. This will lead to manufacturers recovering this duty by increasing the prices of new cars imported to the UK.

Volkswagen will protect the price on any VW California order placed before 2nd December 2020. This means that if any import duty is imposed the resulting price increase will not be passed to the customer, provided they have placed an order before the 1st December 2020 to give the dealer time to process your order.

That clears it up. That's @DTD

 

[PhilR]

A very interesting development. Strange (or typical) that none of us have had word from our dealers about this though

 

[2haw]

The following note is on the VW California page on the Drivethedeal website.

In the event of a no-deal Brexit, import duties will be imposed on the import prices of new cars. This will lead to manufacturers recovering this duty by increasing the prices of new cars imported to the UK.

Volkswagen will protect the price on any VW California order placed before 2nd December 2020. This means that if any import duty is imposed the resulting price increase will not be passed to the customer, provided they have placed an order before the 1st December 2020 to give the dealer time to process your order.

That’s an Interesting name.. @DTD.

Do you have any affiliation with Drive The Deal?

 

[PhilR]

UPDATE!!!.....
VW UK website now has a message confirming no post-Brexit tariffs will be passed on!

 

[Ladymuck]

UPDATE!!!.....
VW UK website now has a message confirming no post-Brexit tariffs will be passed on!

Great news !

 

[sewb]

UPDATE!!!.....
VW UK website now has a message confirming no post-Brexit tariffs will be passed on!

Can you share a link to this please?! - haven't been able to find it - thanks

 

[2haw]

Can you share a link to this please?! - haven't been able to find it - thanks

I think it’s on the VW car site.