New orders delivered post 'the B word' and import tariffs

[toeknee]

My order is due sometime in December. This is worryingly close to the Brexit deadline. Theoretically, my understanding is that a crash out of the EU would result in 10% tariff on imports after 31 Dec - which could results in an extra 6-7k on the price of the vehicle (almost as much as the two-tone paint option!).

The contract says that a buyer cannot cancel an order if it is delivered within 3 months of the expected date on the order form. So, someone with a delivery date in October which slips to January could be in for another 6k on the bill that they cant get out of.

Last year VW said they would allow buyers to cancel under that scenario. But i can't find any reference to what might happen this time round. I asked the dealer and they just said its unlikely so don't worry about it. Not really helpful.

Does anyone have any clarification on this and is my understanding wrong?

 

[zinglefiffy]

I'd threaten to cancel the order unless you can have something in writing spelling out your options under each scenario.

We ordered under similar circumstances last year and had to sign a 'Brexit Quotation Disclaimer' saying despite the quote, the price may increase due to customs tax, but we also have the right to cancel the order if that was the case.

 

[VWCoastbusters]

We're considering ordering and this is a real worry for us. Ideally we wouldn't order for a few more months but if prices jump by 10% it'll put our potential order back another year. So not sure what to do.

 

[Sad]

We're considering ordering and this is a real worry for us. Ideally we wouldn't order for a few more months but if prices jump by 10% it'll put our potential order back another year. So not sure what to do.

Do it... Order now

 

[VWCoastbusters]

That is my other half. He's not as cautious as me

 

[westfalia]

That is my other half. He's not as cautious as me

Should be a `no brainer´
as you've had one already.

 

[VWCoastbusters]

You're right. It's spending the money as I'm now self employed and it's a tough economy

 

[GrumpyGranddad]

My order is due sometime in December. This is worryingly close to the Brexit deadline. Theoretically, my understanding is that a crash out of the EU would result in 10% tariff on imports after 31 Dec - which could results in an extra 6-7k on the price of the vehicle (almost as much as the two-tone paint option!).

The contract says that a buyer cannot cancel an order if it is delivered within 3 months of the expected date on the order form. So, someone with a delivery date in October which slips to January could be in for another 6k on the bill that they cant get out of.

Last year VW said they would allow buyers to cancel under that scenario. But i can't find any reference to what might happen this time round. I asked the dealer and they just said its unlikely so don't worry about it. Not really helpful.

Does anyone have any clarification on this and is my understanding wrong?

My Cali is also due in late Nov/early Dec so I share your concerns that any slippage from the factory or the importer could tip delivery over the Brexit deal deadline and that I may face a 10% tax hit. That will be very painful indeed but as they say ‘you can’t control the uncontrollable’ so I’ll try not to fret about it too much. Having said that I have just emailed the dealer to ask about this situation in respect of order cancellations.

 

[Scoots]

My Cali is also due in late Nov/early Dec so I share your concerns that any slippage from the factory or the importer could tip delivery over the Brexit deal deadline and that I may face a 10% tax hit. That will be very painful indeed but as they say ‘you can’t control the uncontrollable’ so I’ll try not to fret about it too much. Having said that I have just emailed the dealer to ask about this situation in respect of order cancellations.

It's an import duty, not a tax. It will increase the cost of the vehicle to Volkswagen/the dealer and they'll have to decide how they're going to deal with it.

My contract allows for a change of taxation at the time of delivery at my risk (no VAT hikes please Rishi) but states that if the vehicle price changes it can be varied (up or down) and if I don't agree the price I can cancel and get my deposit back.

 

[GrumpyGranddad]

It's an import duty, not a tax. It will increase the cost of the vehicle to Volkswagen/the dealer and they'll have to decide how they're going to deal with it.

My contract allows for a change of taxation at the time of delivery at my risk (no VAT hikes please Rishi) but states that if the vehicle price changes it can be varied (up or down) and if I don't agree the price I can cancel and get my deposit back.

Thanks for that, I’ll check my contract.

It's an import duty, not a tax. It will increase the cost of the vehicle to Volkswagen/the dealer and they'll have to decide how they're going to deal with it.

My contract allows for a change of taxation at the time of delivery at my risk (no VAT hikes please Rishi) but states that if the vehicle price changes it can be varied (up or down) and if I don't agree the price I can cancel and get my deposit back.

Cant see VW and/or the dealer taking a hit on the tax - sorry duty

 

[toeknee]

Thanks for that, I’ll check my contract.

Cant see VW and/or the dealer taking a hit on the tax - sorry duty

Somebody has to take the hit. The point is that under the standard VW contract it is the buyer.

It's an import duty, not a tax. It will increase the cost of the vehicle to Volkswagen/the dealer and they'll have to decide how they're going to deal with it.

My contract allows for a change of taxation at the time of delivery at my risk (no VAT hikes please Rishi) but states that if the vehicle price changes it can be varied (up or down) and if I don't agree the price I can cancel and get my deposit back.

this is an interesting point. Assuming that all the contracts are the same and I’ve missed that? Can you point me to the clause?

 

[Scoots]

My contract is written by the dealer, I’m not sure all VW dealers use the same wording.
I’m looking at clause 7 on mine

 

[SusiBus]

Scoots,
Your right, our Conditions of Sale are different.

 

[toeknee]

Mine says the opposite.

 

[toeknee]

Scoots,
Your right, our Conditions of Sale are different.View attachment 64509

My contract makes no mention of a right to cancel if there is a notification of changes in tax. Merely that I am bound to pay any variation.

 

[toeknee]

Mine says the opposite.

View attachment 64510

It does say that I can cancel if the RRP changes though. So maybe I’m ok. I guess the RRP includes any tax. Points 7i and 7ii seem to contradict one another or I’m just thick.

 

[Scoots]

It does say that I can cancel if the RRP changes though. So maybe I’m ok. I guess the RRP includes any tax. Points 7i and 7ii seem to contradict one another or I’m just thick.

RRP excludes tax but (I'm guessing) would be changed to include import duty as that is part of the cost price of the vehicle.
Odd wording in 7i though. I would have thought VED and VAT were the purchaser's obligation, not the seller. The seller is obliged to pass on those payments to the tax authority.
That's what keeps lawyers busy (and rich)

 

[Wogga]

RRP excludes tax but (I'm guessing) would be changed to include import duty as that is part of the cost price of the vehicle.
Odd wording in 7i though. I would have thought VED and VAT were the purchaser's obligation, not the seller. The seller is obliged to pass on those payments to the tax authority.
That's what keeps lawyers busy (and rich)

Interesting thread, I’d tend to think that RRP includes tax, I.e the final price the retailer will sell it at. Then again we are talking vehicles sales and they use OTR which indeed includes all taxes and duties due?

 

[Scoots]

@toeknee Another thought re that 7i clause...

I would be surprised if the dealers import these vehicles themselves. I imagine they purchase them from VW (UK). If that's the case, the dealer (which I assume is the Seller in your contract) hasn't been liable for any duty and there's nothing for them to pass on to you.

 

[toeknee]

@toeknee Another thought re that 7i clause...

I would be surprised if the dealers import these vehicles themselves. I imagine they purchase them from VW (UK). If that's the case, the dealer (which I assume is the Seller in your contract) hasn't been liable for any duty and there's nothing for them to pass on to you.

Yes. Which suggests that the RRP would have to change which would get me off the hook if I didn’t want to pay the extra 5-6k and I could get my deposit back. I think I’ll just chill about it now and hope it doesn’t come to that.

 

[Captpicar]

Personally I think VW should take the onus of the import tax. I have not noticed the price drop at all considering the GBP has dropped against the Euro.

But what I think is right, and what actually happens in the real world are normally 2 different things.

But it would be an interesting question to ask during discussions upon the price.

 

[westfalia]

Personally I think VW should take the onus of the import tax.

Thats a bit optimistic.

For instance, import duties on a foreign car in Thailand can be 250% > 300%
so a 60k Cali will cost you around 150k in import tax.
Do you think that VW would cough up for it? no, me neither.

 

[calicasas]

Thanks for that, I’ll check my contract.

Cant see VW and/or the dealer taking a hit on the tax - sorry duty

Uummm, not sure. How does your dealer then handle currency fluctuations?? (Raising or lowering of the £ against the €).
when i ordered mine (a number of years ago) i was lucky enough to agree and be able to pay up front - risky if the dealer then goes bust, but nothing in the order mentioned changes to tax or currency fluctuations affecting the final price.
Do any of these contracts with the dealers include currency fluctuations??

 

[Scoots]

Personally I think VW should take the onus of the import tax. I have not noticed the price drop at all considering the GBP has dropped against the Euro.

But what I think is right, and what actually happens in the real world are normally 2 different things.

But it would be an interesting question to ask during discussions upon the price.

I'd keep quiet about the exchange rate. The GBP price should be going up.

 

[calicasas]

I'd keep quiet about the exchange rate. The GBP price should be going up.

Also bear in mind that even with a trade deal in place after Brexit, there will still be additional costs to imports, simply because we won’t get the same deal we had before.. that is guaranteed.