PCP VRT change

paulod123

Having paid a deposit for a new car in Spetember 2021 with a garage and financed through the garage using PCP, we were told the car would not be available until Jan 2022. Thats fine. We agreed on the deposit and monthly payments. It is now Jan 2022 and we now have been told that because of VRT increases we have to increase our deposit amount and the overall monthly payments. My question is do we have any rights to contest this? The Car Company advertised this offer with no mention of any potential increases and should be held to that offer. Thanks for any advise.

colm_mcm

The increases were announced in October.

Did you sign an order form for the car showing the price?

bazz26

The VRT increase was made by the Government back in October when the budget was announced but only takes effect on all brand new cars registered from 1st January. You could argue that the dealer should have notified you of the price increase after the budget announcement and given you the option to cancel the purchase at that time but its very probably that there is a clause built into the terms and conditions of the order form that includes unexpected price increases.

What did the dealer say when you queried it with them?

carsfan2

you are liable for the retail price when you take delivery, doesn’t matter what the price was when you ordered.

In your case the increase is down to tax. The dealer and manufacturer aren’t making any more profit.

you will have to suck it up unfortunately but maybe if you appeal to the dealer that may offer some goodwill gesture towards the increase or something else.

if it’s a popular car the dealer will let you walk away as there will be another punter to pay retail in the current market.

colm_mcm

https://www.boards.ie/discussion/comment/118463605#Comment_118463605

I wouldn’t agree fully with you there, the garage would have given a price that included taxes, as opposed to itemising or selling plus-tax.

Its absolutely the responsibility of the garage to let the customer know that the price they quoted was incorrect. They would have known since October.

The reality is they couldn’t be arsed because they have things good at the moment, and will sell the car either way.

Telling the customer when the car is ready that the price has gone up (3 months after the increase was known to the seller)is not good practice.

The sales order form will have this covered off of course.

Car99

What model car is it?

MTU

Unfortunately when you enter pcp you sign your life away.

colm_mcm

https://www.boards.ie/discussion/comment/118463663#Comment_118463663

Nonsense.

The OP hasn’t even entered PCP yet anyway. The whole selling point of PCP is that you get loads of options after the 3 years and you’re guaranteed a minimum value.

MTU

You selling pcp for a living because that’s good.

Nigzcurran

People happily take on a mortgage over 30 years and then think that a 3 year pcp deal is some outrageous terryifying scam that’ll ruin your life!

colm_mcm

https://www.boards.ie/discussion/comment/118464180#Comment_118464180

No, I’m not selling PCP. What’s the issue you have with it anyway?

please don’t answer with something like “you should buy a car with cash, if you don’t have the cash then you shouldn’t be buying a new car”

https://www.boards.ie/discussion/comment/118464269#Comment_118464269

Don't forget that it's a bubble that's going to burst. Somehow. Even though the finance outstanding on the asset will always be lower than the value of the asset.

MTU

https://www.boards.ie/discussion/comment/118464281#Comment_118464281

You’re painting a beautiful photo of pcp which it isn’t. You seem to have tunnel vision.

colm_mcm

https://www.boards.ie/discussion/comment/118464373#Comment_118464373

Please educate me then.

But only if you actually know how PCP works.

HalfAndHalf

https://www.boards.ie/discussion/comment/118463663#Comment_118463663

Said everyone who doesn’t understand PCP!

Much better to buy a depreciable asset outright and watch it sit on your drive losing more every day!

HalfAndHalf

https://www.boards.ie/discussion/comment/118464373#Comment_118464373

And you’re doing the opposite, so what’s your explanation of why it’s signing your life away?

Is it because you can give a much lower deposit?

Is it because your monthly payments are lower?

Is it because the price of 2nd hand cars are through the roof atm so you’ll likely be owed money at the end?

MTU

Bookies don’t make any money either.

HalfAndHalf

https://www.boards.ie/discussion/comment/118464630#Comment_118464630

Ah the ramblings of someone who hasn’t a clue what they’re talking about!

Just like how someone paints a PHOTO! Must be that tunnel vision 🤦‍♂️

Makes sense now! 😂😂😂

paulod123

https://www.boards.ie/discussion/2058227519/pcp-vrt-change

paulod123

https://www.boards.ie/discussion/comment/118463381#Comment_118463381

Thanks. Yes I have a written quote showing the old price and a deposit was paid based on that for which I have a receipt.

paulod123

https://www.boards.ie/discussion/comment/118463381#Comment_118463381

Just a written quote and a deposit with receipt based on that quote.

paulod123

https://www.boards.ie/discussion/comment/118463449#Comment_118463449

Dealer said I am liable for the increase.

paulod123

https://www.boards.ie/discussion/comment/118463605#Comment_118463605

Understand but the fact we wanted the car there and then and if it was available we would not have been liable for the increase. The 3 month delay is down to them and as a result it has rolled over into the new year meaning we are now liable for the increased VRT.

paulod123

https://www.boards.ie/discussion/comment/118463661#Comment_118463661

Mazda

silver2020

I'll ask a different way.

When vat rate dropped temporarily from 23% to 21% did people expect the garage to keep the extra 2% or drop the price to reflect the new lower vat rate?

Every contract I have seen always states that tax changes can mean a change in the price. And it works both ways

whippet

https://www.boards.ie/discussion/comment/118466194#Comment_118466194

a dealer can't supply a car they don't have. I have waited on every new car I've ever ordered apart from one which was in stock last year.

TAX and VAT rates change - the dealer has no control over these - and the tax becomes payable at the time the car is delivered.

Its a pain in the ass but unfortunately you need to pay the taxes due on the car if you want it - unless you can convince the dealer to eat in to their margin for you.

silver2020

https://www.boards.ie/discussion/comment/118463663#Comment_118463663

I heard that utter sh1te a few years ago when pcp was in its infancy.

Armageddon is what these eejits who did not have even the basic understanding of it said would happen.

6,7,8 years later I still can't see this Armageddon on the horizon and tens of thousands of pcp deals have come and gone and seems 99% of people have been happy. All the valuations stood up and garages were not left with hundreds of unsold cars (even before brexit caused supply issues)

If anything, it was very clever financing and unusually it worked in everyone's favour. I said so back then (under a different name) and was told I did not know what I was talking about (finance costings is one area I have extensive knowledge) - I'd like to say to MTU and the others that dissed pcp, "I told you so"

Nigzcurran

worst case scenario is after 3 years you might owe about 30% of the original value of the car, you finance it, trade it or hand it back, no idea what the doom merchants find so scary about it. Ps, sorry for jumping in on your thread OP.

HalfAndHalf

https://www.boards.ie/discussion/comment/118466984#Comment_118466984

I’d say MTU just can’t get credit!