Possible VAT cut on Dooper in 2008 budget?

[Kimmy2000]

Hi,

Having read that the goverment could be cutting the VAT on low emission cars for the 2008 budget, I was wondering how this would work if a Dooper were speced before the budget (ie Feb?) but then took delivery after the budget was announced (ie April)?

Would you be paying for the old tax- 17.5% VAT or would you be paying for the new tax - 5% VAT? Obviously this would only matter if it actually happened, but I was just curious as to how it would be played by BMW/Mini?

Any thoughts from anyone?

Kimmy

[airbusA346]

I can't see it happening, because it means the government will lose money in taxes unless they increased another tax.

[minicabrio]

VAT is a sales tax, and is added at the point of sale.

If the rate of VAT is cut on a product, your dealership could not charge you a higher rate, even if you had ordered (but not paid for) the product before the rate cut.

[crossbytje]

You'll have to wait ordering it. Have seen the same thing in Belgium, since some time ago, Doopers get a tax-discount because of the 104grCO² emision. We get a 15% discount on price+options+vat with a max of 4470 EUR. Dooper sales have increased

[Kimmy2000]

Thanks for the replys, I am close to putting my order in for the Dooper but this is kinda niggling in the back of my mind. £1500 is a lot of money if it happens

Im now in 2 minds - to wait till the budget to be released then order it, or order it now and not take delivery till April? I dont intend to take delivery till at least March anyway as I would like to have the DSC on the car as part of the new spec.

Why is it so difficult >.<

Kimmy

[airbusA346]

It's one of those things Kimmy.

[CC07ERS]

no chance of getting a rebate

[appmacguy]

In the same situation Kimmy and I have decided to wait for the budget as a good saving could be had making the Cooper D around the same price and the Cooper. On top of that cheaper running costs would make the Cooper D a great way to reduce motoring costs and do our bit environmentally. If the government don't do anything I will order after the budget and have lost nothing waiting around 8 weeks.

The King Report Part 2 will give us a good indication of the UK Government's intention if this is ready before the budget (fingers crossed). Part one is available here: http://www.hm-treasury.gov.uk/media/...07_king840.pdf and gives strong indication of what will be in part 2 in terms of the general public being given incentives to purchase cars with greener technology/figures.

[dlpruk]

I'd be astonished if a lower VAT rate were to be introduced for diesel cars as we have a single rate policy for everything but children's' clothing - ignoring food, which isn't vatted at all. And it's only a one-off tax on purchases that wouldn't effect use of the car.

But there could be some flexibility within the Duty system to reduce the cost of diesel fuel and/or increase the Road Tax payable on higher-emission vehicles. Which could give greater weighting to low emissions, and please the green lobby, while increasing the long term benefit we smug D buyers already get .

Of course I could be wrong and may live to regret ordering my D before the budget!

[Yoastie]

exactly what I am thinking. Besides: less tax sounds like something that is fairly unlikely to happen anyway, so I would expect there to be more tax on other things, so it looks less...

[Stiggy]

Quote: Originally Posted by dlpruk (original)

I'd be astonished if a lower VAT rate were to be introduced for diesel cars as we have a single rate policy for everything but children's' clothing - ignoring food, which isn't vatted at all. And it's only a one-off tax on purchases that wouldn't effect use of the car.

But there could be some flexibility within the Duty system to reduce the cost of diesel fuel and/or increase the Road Tax payable on higher-emission vehicles. Which could give greater weighting to low emissions, and please the green lobby, while increasing the long term benefit we smug D buyers already get .

Of course I could be wrong and may live to regret ordering my D before the budget!

It's not about diesel cars, it's about cars with very low CO2 emissions. The Cooper D with stop/start is one of the lowest carbon emisson cars there is. Just cutting the duty on diesel won't stop people with fuel-guzzling engines. Encouraging people to buy ultra-economical cars in the first place makes sense.

I'm sure that MINI will come up with a policy soon. The last thing they want is people not buying Cooper D's now just because there might be a price cut later.

I hope they have ordered more diesel engines from Peugeot too, as there is going to be a huge demand if the price cut does happen!

[Japper]

Quote: Originally Posted by minicabrio (original)

VAT is a sales tax, and is added at the point of sale.

If the rate of VAT is cut on a product, your dealership could not charge you a higher rate, even if you had ordered (but not paid for) the product before the rate cut.

I agree, it's the point at which you pay for the car that counts. That's if the government bring it in and bring it in, in April.

Anybody thought that IF they do bring it in, it will devalue all existing Doopers overnight

[Stiggy]

No, you don't pay VAT on used cars, do you?

[minicabrio]

Quote: Originally Posted by Stiggy (original)

No, you don't pay VAT on used cars, do you?

No you don't.... however if suddenly 10% is cut off the price of a new one, nearly new ones will take a price hit also

[Ant FR]

i think some of you are wrongly assuming where this VAT break will come in.

The VAT break will be mainly used to envourage alternative fuel use. So there has been talk of hybrids getting a lower vat threshold, however Hybrids are still not preferred as they still use regular fuels.

The real breaks are being encouraged for vehicles that run on either a hydro cell or something liek the brazillians use with Ethanol based fuels. the emphasis is being put on sole use of alternative fuels. ITs being used to encourage growth in the area as more people do it the costs involved in producing something like ethanol based fuels goes down. Thats why savvy investors are buying up positions in certain sugar companies.......

If you get a break on the cooper D i will eat my hat, and its a sombrero too