Price increase and refund on deposit

[mikeelawson]

I am bout to place deposit on VW Ocean. Two things I would appreciate clarity on. Advised that as of October prices are going up by £1,000 and hasnt indicated whether if I put a deposit this week whether it will be refundable.

Any thoughts.

Regards,

Mike

 

[subthree]

Place your order prior to the price rise and avoid the increase? Dealers will always refund a deposit, not worth their hassle not to, and there will be another punter along anyway. Especially with current demand.

 

[Jabberwocky]

I would have thought that if you place an order now at current prevailing prices you are entering into a contract and that's what you should pay. Your deposit is part of that contract.

 

[CamperFam]

A friend of mine has placed an order. Contract fineprint states that it's VW's choice to pull out of the contract if they want due to Brexit impacts, but the buyer cannot and is liable to pay the full amount, or lose their deposit.

Be warned.

 

[Blue Yonder]

Contract law overrides a company's "small print" that is in conflict with it. Contract law states that once you pay a deposit you have entered into a legally binding contract. Now the seller must supply the goods (your van) at the agreed bottom line price. The only exception to this is if the tax/import duties changes after the deposit is paid. In this case the seller can, and probably will, amend the price to pay the extra tax/import duties due on the outstanding balance in order to pay it to the tax/custom and excise men. If you cancel your order then you are the one in breach of contract. The seller can can now hold back money from your deposit to cover any mitigated losses due to not completing. Such losses cannot be punitive. So the seller just can't hold onto your deposit. If they can resell your van for at least the price you were contracted to pay then the only reasonable cost they could hold back would be enough to cover the admin costs incurred by them setting up then closing down your contract. I doubt they would do this unless they felt you were being unreasonable.

 

[Scoots]

Contract law overrides a company's "small print" that is in conflict with it. Contract law states that once you pay a deposit you have entered into a legally binding contract. Now the seller must supply the goods (your van) at the agreed bottom line price. The only exception to this is if the tax/import duties changes after the deposit is paid. In this case the seller can, and probably will, amend the price to pay the extra tax/import duties due on the outstanding balance in order to pay it to the tax/custom and excise men. If you cancel your order then you are the one in breach of contract. The seller can can now hold back money from your deposit to cover any mitigated losses due to not completing. Such losses cannot be punitive. So the seller just can't hold onto your deposit. If they can resell your van for at least the price you were contracted to pay then the only reasonable cost they could hold back would be enough to cover the admin costs incurred by them setting up then closing down your contract. I doubt they would do this unless they felt you were being unreasonable.

Import duty is the responsibility of the importer. It is part of the (UK) cost of the vehicle not a tax on the purchaser. If VW UK increase the price because of import duty you can walk away from the deal with your deposit

 

[Blue Yonder]

Import duty is the responsibility of the importer. It is part of the (UK) cost of the vehicle not a tax on the purchaser. If VW UK increase the price because of import duty you can walk away from the deal with your deposit

Ok I have to admit I am not sure with regards to changes to import duties with regards if this can be passed on to the buyer by the seller. I assumed it would be treated as a tax increase on which i am certain can be passed on to the buyer.

Ok I have to admit I am not sure with regards to changes to import duties with regards if this can be passed on to the buyer by the seller. I assumed it would be treated as a tax increase on which i am certain can be passed on to the buyer.

Further to my last post I would look carefully at the contract T&Cs to see if there is a clause in it that effectively asks you the buyer to accept an increase to the price if the import duty increases after you have entered into a contract (ie paid a deposit)

 

[Ch1pbutty]

Very grey area at the moment. As things stand buyer is only liable for increase it VAT (not import duty, as you are buying from UK).. But doubt that the dealer will cover the additional import tax as the profit margins on a new car are quite slim.

It’s a lot of cash so worth seeking a legal opinion before signing to confirm that you can walk away with no fee; If it was me I would hold off ordering until the situation is clear, unless you are 100% sure you want a Cali and are able to cover the additional Import duty in the worst case.

If the import duty is passed onto the buyer, then expect the conversion market will see a boost next year.

 

[2haw]

Just tell the dealer that you want to order but its on the condition that the price does not increase. If the price increases, you want the right to a full refund. Tell him to write it on your order.

The dealer can either agree or not!

 

[Karlos]

Very grey area at the moment. As things stand buyer is only liable for increase it VAT (not import duty, as you are buying from UK).. But doubt that the dealer will cover the additional import tax as the profit margins in a new car are quite slim.

It’s a lot of cash so worth seeking a legal opinion before signing confirm that you can walk away with no fee; If it was me I would hold off ordering until the situation is clear, unless you are 100% sure you want a Cali and are able to cover the additional Import duty in the worst case.

If the import duty is passed onto the buyer, then expect the conversion market will see a boost next year.

If the import duty is passed onto the buyer, then expect the conversion market will see a boost next year

And the second hand Cali Market.