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A car I ordered a year ago has now increased in price due to the tax increase - should the dealer cover this cost?
I ordered my Ford Mustang GT last year and was told that it would take 12 months to be delivered. As you know, the tax band rates have gone up and I believe that the dealer is passing the additional cost onto me, even though they said they may have to take the hit for the price increase due to the GT emissions being high. It's nearly £2000 a year for the first year, and only £140 a year thereafter. If my car's price was locked at the point of ordering, were do I legally stand in arguing that I shouldn't have to pay the increased price. I had planned to buy this car on a PCP, so I had already worked out my finances and what I could afford monthly.
Asked on 18 October 2017 by Michael Madden
Answered by
Honest John
The dealer is not responsible for the Government increasing tax on the car in between you ordering the car and the car being delivered. The price was price locked. What happened was that the Showroom tax on the price increased. Nothing you can do about that unless you can somehow persuade the dealer to swallow the tax hike. But, in any case, it evens out. A car that would otherwise have been hit with an annual tax of £535 and a Showroom tax of £1120, now gets hit with a Showroom tax of £2000 and an annual tax of £140. So actually, after a couple of years, you're better off anyway. And your Mustang has better resale because, instead of being taxed at £535 a year, it's only taxed at £140 a year. I'm surprised the dealer has not explained that to you.
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