Don't hate me - genuine Brexit related purchase question

[anotherv60]

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!

[Haldex]

Originally Posted by anotherv60

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?

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

[Crockers]

Originally Posted by Haldex

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??

[Haldex]

Originally Posted by Crockers

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..

[DangerMUK]

Originally Posted by Haldex

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.

[ergonomist]

Originally Posted by Haldex

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

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.

[Haldex]

Originally Posted by ergonomist

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 .

Well at least they left a way out for the buyer

[AB-UK]

Originally Posted by ergonomist

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.

That will be quite a concern for those of us who have to buy privately.
As a previous poster noted, on a top spec car that could mean many £000s on top of what you might have budgeted for. If the only option is to cancel the order you would be left looking for a cheaper alternative, and an even longer wait for a new car.

[DangerMUK]

Originally Posted by ergonomist

Consumer Rights Act would not have been contravened.

If you have a signed contract with the price on it they have to legally adhere to that price, regardless of what they make you sign (barring you signing a revised order with the higher price on it being accepted :-)). Would you take them to court to find out? I doubt they'd let it get that far.

Then again it depends what you've signed and how far you're willing to push it. If they didn't come good on the actual sale and you went to court and you had a signed sale contract you could definitely reclaim costs and other fees - possibly the difference to buy the car elsewhere.

http://www.legislation.gov.uk/ukpga/...ntents/enacted

Don't let the dealership plough their Ts and Cs at you, our laws trump businesses Ts and Cs.

Send emails to Dealer Principal and Finance Manager instead of phone calls as a first step, have it in writing and go from there. If they're your local dealer you might want to compromise to keep the relationship with them, etc.

[jonnyu]

Originally Posted by anotherv60

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?

Yes because you are doing a contract when you buy a car.
At least according to European rules, when you give an amount for the entry you are sealing a contract.
They can break the contract by not selling you by the price you bought but then they have to return more than the amount you already paid.

Post brexit i have no clue how that will work because UK will be outside these normal rules and regulations that protect the consumers.