VAT cut in emergency budget? Just ordered

[boater291]

I ordered my first Tesla, a model 3 LR, last week with estimated delivery this month so I expect I'd be contacted this coming week if delivery will be made on time.

This morning, the sunday papers are running with the story that Rishi is likely to cut VAT and even zero rate some products - to be announced in the emergency budget taking place early July (6th?). I suspect we will be looking at a minimum VAT cut down to 17%, perhaps even 15%. Obviously this is a decent saving on a car worth nearly £50k. Who knows what other incentives could be thrown at EV purchases.

It would make sense for me to push delivery back until 7/8/9th July if possible in order to take advantage of this VAT cut, assuming it goes ahead and also Tesla doesn't increase their base price. Can anyone advise what they'd do in this situation.. does my order need to be completely cancelled (forfeiting the £100 deposit) and then reordering post potential VAT cut or is Tesla likely to honour this once the cut comes into affect? My concern is missing the June batch of deliveries will mean having to wait a couple of months for the next batch.

I can't wait to get my hands on the model 3 however would be willing to wait another week or two if it means saving £1-2k.

 

[Mr Speirs]

You’d need to find out if the VAT would be calculated at the time or ordering or when the invoice would be raised. If the former if it’s when the invoice is raised but happens to be before the VAT cut comes into place then I would certainly cancel the order and reorder when VAT has been cut.

During this pandemic papers have been fairly spot on with reporting something to do with financial stimulus.

 

[Mark_T]

VAT is calculated as at the date on the invoice, this is the 'tax point', so it is not based on the order date, but will be close to or on the delivery date, unless it is raised a little earlier as part of a finance deal for example.

 

[boater291]

Thank you, very useful. Yes, so far I have only had the 'booking invoice' (deposit) raised. I will have a chat to them this week and see if I can push the delivery date back until post budget. As you say Mr Speirs, I strongly suspect the papers have this right and there will be some kind of cut.

Hopefully Tesla will be ok with pushing it back and missing quarter end, otherwise I may be in for a longer wait

 

[hctip]

How would this sit with a business contract hire.

Would it be point of original order of VAT at the current rate per month invoice??

Ta

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[Carl_SG]

Pros of waiting:

You might get USB C and the wireless charging pad
You might get it 1-2K cheaper

Cons of waiting:
You will not get USB C
The price might increase for Q3 delivers as lets face it with Teslas still selling like hot cakes they dont need to disocunt.
You will likely have to wait untill August for delivery as Tesla will not want any cars hanging arround into Q3.

But there are a whole lot of mights up there, unless you have a crystal ball you will never get it right, if a missed cost saving is likely to leave a bitter taste in your mouth for all of time then wait, but you will need to be patient!

 

[boater291]

Pros of waiting:

You might get USB C and the wireless charging pad
You might get it 1-2K cheaper

Cons of waiting:
You will not get USB C
The price might increase for Q3 delivers as lets face it with Teslas still selling like hot cakes they dont need to disocunt.
You will likely have to wait untill August for delivery as Tesla will not want any cars hanging arround into Q3.

But there are a whole lot of mights up there, unless you have a crystal ball you will never get it right, if a missed cost saving is likely to leave a bitter taste in your mouth for all of time then wait, but you will need to be patient!

Yes, a difficult decision! I guess at the end of the day it's 'only' a potential saving of ~£2k (if that) not huge in the grand scheme of things when paying ~£50k for a car. Hmm..

 

[bhav]

If your read the finer details of some of the news on this it suggests the VAT cut could or would only be for certain most affected sectors like hospitality, leisure, bars, pubs.

That would make sense to make as it would avoid the absolutely enormous cost of the general VAT cut while at least trying to prop up a seriously affected sector.

Plus, I'm not that convinced that VAT influences buying of cars that much when lots (most?) buying on finance anyway - the monthly amount probably doesn't change so much as to bring in a whole load of new demand.

 

[kevuwk]

Nothing to stop them increasing the price of the car to profit from any decrease in VAT

 

[Mark_T]

I'm not expecting an VAT reduction to be on cars, but if it was, it is unlikely that Tesla would raise prices to absorb any decrease in VAT as that would impact on business leasing to VAT registered companies as they would see it as a price rise even though personal buyers wouldn't.

 

[Durzel]

I’d say if you can afford to wait a month or two then it’s probably a smart move.

USB-C (and reportedly more amps/wattage on the port) and wireless charging in cars being manufactured now.

I don’t see VAT getting reduced to 15% to be honest, that would be a massive dent in the Govt takings. 17 or 17.5% seems reasonable, with some other stimulus directly aimed at keeping people in jobs and encouraging recruitment (NI deferment for new employees, etc)

A VAT cut makes no difference to Tesla really and would increase demand, and pre-virus demand was already outstripping supply.

 

[Keeper]

I thought that it was more likely that the ev subsidy will be increased from £3000 to £6000 if you trade in your old ice car. I’d cancel an wait but then you’ll be part of the stampede that follows so delivery wouldn’t then be very quick probably but you might save £2,900 on the price. A VAT reduction on cars will mostly help European manufactures. I see differing VAT rates for a period dependent on services provided and/or commodity type.

 

[CMc1]

BJ hinted today in the Commons that VAT drop is enroute with Rishi’s budget.

I’d definitely hold off on ANY big purchase over the next week or so...

 

[boater291]

Yes, I've decided I will wait. Currently no delivery date anyway (estimate is still this month). If I receive a delivery date before budget I will push it back - I realise I may have to wait until August but I think it will be worth the saving.

With any luck we'll follow the EU and eliminate VAT on EVs! That's wishful thinking though..

 

[AnthonyLR]

Yes, I've decided I will wait. Currently no delivery date anyway (estimate is still this month). If I receive a delivery date before budget I will push it back - I realise I may have to wait until August but I think it will be worth the saving.

With any luck we'll follow the EU and eliminate VAT on EVs! That's wishful thinking though..

Yup. Think it is more likely to be a general VAT cut rather than a specific one for electric cars. Say about 3%? Still nice on a £50k car.

 

[james willam]

VAT Calculator - The Ultimate Online VAT Calculator 2020
you can use this site for VAT latest news updates and calculations.

 

[m3p_uk]

Doesn't look like there's going to be any more movement on vat now :-/

 

[Gamemeister]

Doesn't look like there's going to be any more movement on vat now :-/

Always the autumn budget if you can hold out