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

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.

Yes (maybe), import duty is what we're discussing
 
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Of course this was in respect of one of the previous Brexit deadlines. As mikeelawson says above if this is still the case then discussion over. Fingers crossed.
 
Yes (maybe), import duty is what we're discussing
.. thank you.. as a person who reads legal text for a living i would like to think i was a aware of the difference
 
It is worth bearing in mind that the import duty is applied only to the cost goods at port, so a vehicle currently costing 10k will be 11k if WTO‘s 10% duty is Applied + VAT.

In real terms the OTR price will not go up 10% only the cost of the goods and the additional VAT element. The retailers should not be adding 10% on other goods and services as part of the sale and that includes profit margin!

if the factory price to VW UK is £40k (not an unreasonable estimate) then the increase is £4K+vat.
 
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Do we think this is delivered by October or ordered? We are test driving a van next weekend and then make decision after that. Going to phone dealer to get his opinion. If this applies I will wait for the post covid vans to come on the market
 
Do we think this is delivered by October or ordered? We are test driving a van next weekend and then make decision after that. Going to phone dealer to get his opinion. If this applies I will wait for the post covid vans to come on the market
That article is from last year and refers to Oct 31 20? , this year I assume it has to be imported by the 31st Dec when the transition finishes, if we don’t get a deal you will be liable to import duty, whether VW UK has any offers no one knows.

i find it interesting however that the EU manufacturers don’t seem to be doing “buy now to Beat the duty“ type Promos, maybe they knoW something we don’t.
 
Just for info’ here’s what my dealer says on the subject. Nothing definitive at this stage.

Good morning Mike
Rest assured, VW will apply a suitable plan if your vehicle might fall into a category of Brexit related vehicles.
But it really is just ‘ifs and buts’ at the moment.
We’ll keep you posted with official news and let you know once we have a firm idea of when yours is likely to arrive.
All the best for now.
 
Just for info’ here’s what my dealer says on the subject. Nothing definitive at this stage.

Good morning Mike
Rest assured, VW will apply a suitable plan if your vehicle might fall into a category of Brexit related vehicles.
But it really is just ‘ifs and buts’ at the moment.
We’ll keep you posted with official news and let you know once we have a firm idea of when yours is likely to arrive.
All the best for now.
similar to my dealer's response. The frustration is that they are saying to me, 'dont worry about it, we'll sort it out if something goes wrong, but please sign this legally binding contract which is ambiguous as to whether you may have to commit to £1000s in additional cost. but it wont happen so dont worry about it. But please sign it anyway'
 
I know!!
Let’s hope our Dubs are imported before the deadline.
 
did you have any luck here Tom?
I have spoken to VW dealer. They have said any increase (which they do not belieev there will be an import tax) will have to be met by the customer. They are however prepared to put something in the contract to say that you can back out if this happens (this is the dealer contract).
 
So my dealer is saying they are not willing to change the contract. I'm expected to commit to paying any variation in tax (whatever that may be). Furthermore, they are unable to clarify whether the wording of the contract, which states that i have a right to cancel if the RRP changes, covers a change in import duty.

I think i may cancel and revisit the idea of a purchase in the new year as i'm in no hurry.
 
So my dealer is saying they are not willing to change the contract. I'm expected to commit to paying any variation in tax (whatever that may be). Furthermore, they are unable to clarify whether the wording of the contract, which states that i have a right to cancel if the RRP changes, covers a change in import duty.

I think i may cancel and revisit the idea of a purchase in the new year as i'm in no hurry.

If you cancel now you'll lose your deposit, and the vehicle, whether or not it would have beaten the Brexit deadline and whether or not there's anything extra to pay.

You're in no worse a position if you hold on for a few weeks/months and then cancel if things aren't going the way you want.

With regard to your contract, they're not going to waive the part that refers to variation in tax because that covers any changes in VAT at the time the contract is completed.

The consumer doesn't pay the import duty, the importer does. The dealer can't charge you import duty, they can only adjust the price of the vehicle. I'm pretty sure the contract works in your favour in this instance.

(Let's just chill for a bit and see what Tom at Breeze digs up)
 
If you cancel now you'll lose your deposit, and the vehicle, whether or not it would have beaten the Brexit deadline and whether or not there's anything extra to pay.

You're in no worse a position if you hold on for a few weeks/months and then cancel if things aren't going the way you want.

With regard to your contract, they're not going to waive the part that refers to variation in tax because that covers any changes in VAT at the time the contract is completed.

The consumer doesn't pay the import duty, the importer does. The dealer can't charge you import duty, they can only adjust the price of the vehicle. I'm pretty sure the contract works in your favour in this instance.

(Let's just chill for a bit and see what Tom + Breeze digs up)
I haven't signed anything yet so i am assuming i could get the £1000 back but that's probably easier said than done, i agree.

'The consumer doesn't pay the import duty, the importer does. The dealer can't charge you import duty, they can only adjust the price of the vehicle. I'm pretty sure the contract works in your favour in this instance.' - yes i tend to agree. But the fact that it's in the dealer's interest to explain this to me, in order to avoid a cancellation, and yet they were specifically unwilling to concede this when i asked just that, makes me think they don't think thats the case.
 
Been talking to Autoebid to get a quote for a new Cali. Very likely the hard sell, but they were telling me this morning that the dealers they work with are all expecting an import increase post-January. I was told they have had a massive uptake in quotes as people are concerned about the increases.
 
I haven't signed anything yet

You must have done surely?

I wouldn't part with a grand on a handshake. I'm sure they won't have ordered your van without a legally binding document.
 
nope. i bought it through drivethedeal. This whole debate with the car dealer came about because i was discussing the terms of the contract before signing. However, i think that the verbal contract with drivethedeal plus the £1000 deposit is enough for the dealer as i have a production week of 38. So the 1k is committed in any case.
 
Some years ago we were in a similar position at the time that VAT was increased. The vehicle that we were purchasing was not due for delivery until after the VAT rise and the dealer tried to insist that we paid the higher price but we had a dated invoice before that date. I spoke to HMRC who confirmed that the tax was due at the rate correct at the invoice date. I had also asked the same hypothetical question at a number of other motor dealers who all insisted that the higher rate would apply.

In the end my dealer, after being referred to HMRC, had to reluctantly admit that they were wrong and I paid the lower rate of tax! From that I can but assume all those that I asked were pocketing the extra payment.

How many more will be trying on the same trick come the beginning of 2021?

How you can agree to order what is effectively a bespoke vehicle, pay a deposit for it and sign on the dotted line agreeing to a contract that is in effect variable at the manufacturers and concessionaires wim is beyond me. Perhaps it's typical scam of the motor trade or creative accountants.
 
This is not a political post.

Dealer response.

i ordered the Cali today, should my vehicle land post 31st Dec without a deal, I will be liable for any duty applied. However since the quoted price OTR/RRP would of increased I do have the right to cancel.

They have heard nothing from VWUK regarding their position and are hoping VW may do some thing to lessen the impact since the UK is VW‘s second biggest market........ I am not that naive, but with a possibility of cancellations they may consider something.

hopefully a chance it lands in December, otherwise it will be liable for 10% on duty and shipping + VAT or walk away.
 
This is not a political post.

Dealer response.

i ordered the Cali today, should my vehicle land post 31st Dec without a deal, I will be liable for any duty applied. However since the quoted price OTR/RRP would of increased I do have the right to cancel.

They have heard nothing from VWUK regarding their position and are hoping VW may do some thing to lessen the impact since the UK is VW‘s second biggest market........ I am not that naive, but with a possibility of cancellations they may consider something.

hopefully a chance it lands in December, otherwise it will be liable for 10% on duty and shipping + VAT or walk away.
Just for info’ I found this on the UK Government website. As my Cali’ delivery is likely to be perilously close to the end of the year, it does give me a little comfort that as long as it is in transit on or before the 31/12 no tariffs will be applied.

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