Price Increase After I Paid Deposit

[gamesman1]

Hi,

I recently placed an order for a new N Lline S Hybrid Shadow Grey with on the road price of £39,670.

I am wondering if the price were to increase to over the 40K mark before I take delivery will I be liable for the extra luxury car tax {VED}.

I asked the dealer and he has assured me this would not happen as I have already agreed the price and paid the deposit.

I am not convinced of this and cant find a clear answer online.

Anyone had any experience of this?

TIA

[Chickin]

As I understand it, the tax is charged on the car's list price (including any options). If you negotiate a good deal that takes your paid price below £40k, the invoice for a new car will show the list price less any discount so the luxury tax is still payable.


Double-check with the dealer that the invoice price will show the current list price, and not any new price with a bigger discount. ie £39,670 with no discount rather than £40,001 with £331 discount.

I would also get the dealer to confirm in writing their liability for the excess VED if you are charged it. If they're not willing to do this that means they aren't really sure, and if they are willing then you've got an easily winnable legal case if they later dispute it (as long as they stay in business).

Note also that the threshold will be raised for inflation, although I don't know whether this will happen before or after you take delivery.

[gamesman1]

I bought the car with Hyundia Afiinity and the price was just below 35K and states it is the MSRP, but I am not sure if this discount will be allowed when calculating the car's list price.

I was speaking to the dealer yesterday and he said prices are going up 1st April.

[Big S]

"I recently placed an order for a new N Lline S Hybrid Shadow Grey with on the road price of £39,670. "

You can take the first years registration fee £55, and the 1st years road tax £220 off of the on the road price to obtain its real tax band cost ie £39,670 minus £275 = £39,485. Not a lot I know but every little helps as Tesco keep telling us.


"I would also get the dealer to confirm in writing their liability for the excess VED if you are charged it. "

I doubt you would get any dealer to put in writing that they are going to pay any extra VED should the car go above the £40k threshold if your price increased.

[gamesman1]

So my car was supposed to be here at the end of May but just had an update from the dealer to say that it will be July now. Explained I was not happy that the car will probably now be above the 40k mark and I would end up paying the luxury road tax.

He has assued me that I have a locked in price in regards to the road tax and I would not pay the extra premium even if the car goes obove 40k. I have attatched an extract from his email.


"The RRP on the car is also fixed at the price you have agreed too.
They usually change their pricing quarterly. So that will be July 1st . "

Hope this is correct but the good thing I now have it in writing.

[Wychwood]

As far as I know when you pay the deposit on your car and the order form has your name on it, the price cannot change. I also believe that Hyundai in line with other manufacturers increase prices only once a year - I think Hyundai do it on 1 January. However, I do know that the Affinity Scheme discount is reviewed quarterly and has recently become less generous.