Don't hate me - genuine Brexit related purchase question
 

I was chatting today with my friend who works for a management consultancy company; he has seen a breakdown of expected cost increases for vehicles sold in the UK if we have a no deal brexit and its forecasting Volvo final sale prices will jump between 14.6% and 18.4%, I was surprised as I was under the impression that the WTO was 10% on cars, but he pointed out if companies allow for a 1% margin reduction then for a manufacture such as Volvo who uses GKN products for its vehicles (made in the UK), it will be paying import levies on the components as well as the sale of the final car, hence it will be higher than 10% tariff….

The question I have for anyone in the know is if you sign a deal to purchase or lease a car now for a fixed price, does that price have to be honoured if the vehicle is delivered post brexit? The higher figure (18.4%) is for 4WD vehicles (including T8) and it basically wipes out the discount that is currently available now, I’ve priced up some V90CCs and this impact is an extra £8464, on the spec I’d like so not small change!

I just did an identical quote for my existing lease car (delivered new last September) and it's now showing - with the same company - at £3249 more over 4 years. So it seems that increase has been added already :shocked:

All retailers will eventually expect the consumer to cover the increased costs associated with additional tariffs. Porsche have been warning buyers of this:- https://www.autocar.co.uk/car-news/i...no-deal-brexit

I read the Autocar article. Porsche were just advising that there could be a price penalty if the UK leaves the EU without a deal. The article brought a torrent of comments from the Brexiteers saying it is fake news.
I am sure Porsche and probably all the other car manufacturers will pass on any additional costs incurred should we leave without a deal, contrary to those who view the world through rose tinted windscreens.

Who cares when it gets delivered? They MUST honor the price at the moment of signing.

Read the small print....usually says something about only increasing if the rate of tax increases. If VAT was to rise would you not expect to pay that extra cost??

Yeah, VAT aside- but the price is established at the moment of signing..

Depends on the sales contract that was signed and the Ts and Cs that are attached to it by the dealership.

Most people would take them on the chin even if that then violates the Consumer Rights Act that would say what they're doing is illegal.

Not sure how it would pan out, a lot of UK retailers act like their Ts and Cs trump our consumer laws when they don't so who knows. Would someone take them to court to find out? I don't know.

Just dug out the new car paperwork for my XC90. The Ts & Cs clearly stated that VAT would be charged at the rate in force at the time of delivery (completion of the contract).

It also stated that if Volvo increased the recommended price before delivery the dealer could pass on that increase and I would only have the right to cancel the contract (with lots of legalise and caveats around the wording). It didn't allow me to hold the dealer to the original agreed price (interestingly, it also worked the other way - if Volvo reduced the price between order and delivery and the dealer didn't offer me the full reduction, I could also have cancelled the order). Consumer Rights Act would not have been contravened.

One has to be careful with contracts not to read into them what we want the situation to be rather than what it actually is.

Well at least they left a way out for the buyer :)