Another Price Increase

[Dippo]

If you have an order placed prior to the last price increase, you already have a notional price 'benefit' of about £1,500 over the current price. Add in another price increase of at least £1,000 (Lexus would not be daft enough to price the car with metallic just over the threshold), then you have a 'benefit' of around £2,500 compared to the market prices at the time you would be making the decision to cancel. Assuming Lexus prices maintain a similar competitive level to where they are now, then if you cancelled your order and went for another make you would lose that £2,500 'benefit' because you did not want to pay the extra VED of about £1,400 over years 2 to 5 of ownership.

I'm not sure I'd follow that route.

[wecpc]

3 hours ago, Dippo said:

If you have an order placed prior to the last price increase, you already have a notional price 'benefit' of about £1,500 over the current price. Add in another price increase of at least £1,000 (Lexus would not be daft enough to price the car with metallic just over the threshold), then you have a 'benefit' of around £2,500 compared to the market prices at the time you would be making the decision to cancel. Assuming Lexus prices maintain a similar competitive level to where they are now, then if you cancelled your order and went for another make you would lose that £2,500 'benefit' because you did not want to pay the extra VED of about £1,400 over years 2 to 5 of ownership.

I'm not sure I'd follow that route.

I see what you are saying but with the new tax increases due in April the Luxury tax increases to £355 making it then £1,775 and not £1,400 over years 2 to 5, and if I was to cancel I would not loose any benefit as I would just simply keep my Jaguar XE.

[wecpc]

On 2/23/2022 at 9:53 AM, Dippo said:

I see they've added another £1,500 onto the price of a Premium Edition - it's now £39,255. Add on special metallic, then subtract VED and First Registration Fee, and it comes in around £39,950; just below the higher VED threshold.

Are you sure that you have to subtract VED and First Registration Fee as I have looked everywhere and all I can find is "(the published price before any discounts) of more than £40,000". I take that as the on the road price, which in my case would be £39,925 with metallic paint (soon to be £39,945) which is getting rather too close for comfort. If I was to subtract VED of £170 (which is due to rise to £190 in April) and the First Registration Fee of £55 as you state then this would give a little more wiggle room of £300.

[Dippo]

You're right about the total VED figure - I was taking it over 5 years, and therefore excluding the first year when it's in the OTR price, whereas in fact it applies for 5 years of renewals (years 2 - 6).

For the subtraction of VED and first registration fee, Google brought up this reference:

https://www.honestjohn.co.uk/askhj/answer/96980/what-s-included-in-the-list-price-of-a-vehicle-

[wecpc]

49 minutes ago, Dippo said:

You're right about the total VED figure - I was taking it over 5 years, and therefore excluding the first year when it's in the OTR price, whereas in fact it applies for 5 years of renewals (years 2 - 6).

For the subtraction of VED and first registration fee, Google brought up this reference:

https://www.honestjohn.co.uk/askhj/answer/96980/what-s-included-in-the-list-price-of-a-vehicle-

Thanks for that link it puts my mind at rest a little assuming no more price increases. I know that it covers manufacturers fitted options which I have none apart from the metallic paint but what about dealer fitted options such as dash cams that I am having fitted along with Gap/Smart/Alloy insurances and Paint Protection. If they are included then I will cancel those and arrange them myself.

[b4u2]

To all lexus es300 owners

Your car looks beautiful 😍 

[Dippo]

16 minutes ago, wecpc said:

Thanks for that link it puts my mind at rest a little assuming no more price increases. I know that it covers manufacturers fitted options which I have none apart from the metallic paint but what about dealer fitted options such as dash cams that I am having fitted along with Gap/Smart/Alloy insurances and Paint Protection. If they are included then I will cancel those and arrange them myself.

if you look at the ES price list, it actually shows a List Price (P11D) and an OTR Price.

I'm sure all the other dealer fit items you mention would be done after registration!😉

[wecpc]

4 hours ago, Dippo said:

if you look at the ES price list, it actually shows a List Price (P11D) and an OTR Price.

I'm sure all the other dealer fit items you mention would be done after registration!😉

You are correct about the List Price (P11D) and an OTR Price as I never noticed that before, thanks.

[Julncamp54]

Thank you Rishi. For putting up the VED bands and premium car tax yesterday 

clearly with everything else going up u couldn’t resist hitting the motorist again 

shame on you u…….

[Aljaf90]

On 2/28/2022 at 8:37 PM, ColinBarber said:

The price for the car, options, delivery charge is fixed when you place your order and pay the deposit, therefore you aren't affected by a list price increase for the product. The price you pay for vehicle excise duty however is based on the list price at the time of registration, not order, and therefore you are affected by a list price increase.

If your car price goes over the £ 40k threshold then your 2nd to 6th year road tax will have the £ 335 premium car tax added. 

Hi

This is interesting because I placed an order in December 2021 for an F sport with tech & safety pack + metallic paint which came in at just under £40,000 list price/p11d.

I have it in writing via an email that the road tax cost will be based on this pricing before the new price changes & that I will not pay the additional excess rate as a result.

What are my options here if this is in writing?

[ColinBarber]

10 hours ago, Aljaf90 said:

Hi

This is interesting because I placed an order in December 2021 for an F sport with tech & safety pack + metallic paint which came in at just under £40,000 list price/p11d.

I have it in writing via an email that the road tax cost will be based on this pricing before the new price changes & that I will not pay the additional excess rate as a result.

What are my options here if this is in writing?

I'd check the terms to make sure there isn't a get out clause for them - not sure how they can guarantee road tax costs when it is outside of their control, unless they are intending to take on the risk and therefore refund you any additional expenses you will incur over the next 6 years (which I highly doubt). Maybe they are just talking about the first year VED?

I suggest speaking to your dealer to find out what you exposure is and alter/cancel your order if you aren't prepared to take on the extra expense.

[Aljaf90]

2 hours ago, ColinBarber said:

I'd check the terms to make sure there isn't a get out clause for them - not sure how they can guarantee road tax costs when it is outside of their control, unless they are intending to take on the risk and therefore refund you any additional expenses you will incur over the next 6 years (which I highly doubt). Maybe they are just talking about the first year VED?

I suggest speaking to your dealer to find out what you exposure is and alter/cancel your order if you aren't prepared to take on the extra expense.

Thanks - I just spoke to them on the phone. Even their sales team were not aware and had to check this with a service manager before confirming the road tax calculation is based on the registration date as opposed to the sale date. In regards to my situation, they are going to check with their accountants and get back to me. I specifically had it confirmed in an email that my road tax cost in future years (not just the first year VED) would be protected by any future price rises as I was not willing to pay the premium tax.

So as you say, either they compensate me the difference (it's a 4 year PCP, so years 2-4 only) via a further discount or free servicing or something, or they have to cancel my order & refund me my holding deposit.

[ColinBarber]

3 hours ago, Aljaf90 said:

So as you say, either they compensate me the difference (it's a 4 year PCP, so years 2-4 only) via a further discount or free servicing or something, or they have to cancel my order & refund me my holding deposit.

An unfortunate situation but better to have it resolved now, one way or the other, rather than only finding out at the start of year two of ownership.

[wecpc]

On 4/20/2022 at 1:57 PM, Aljaf90 said:

Thanks - I just spoke to them on the phone. Even their sales team were not aware and had to check this with a service manager before confirming the road tax calculation is based on the registration date as opposed to the sale date. In regards to my situation, they are going to check with their accountants and get back to me. I specifically had it confirmed in an email that my road tax cost in future years (not just the first year VED) would be protected by any future price rises as I was not willing to pay the premium tax.

So as you say, either they compensate me the difference (it's a 4 year PCP, so years 2-4 only) via a further discount or free servicing or something, or they have to cancel my order & refund me my holding deposit.

Did they ever get back to you and if so what was their answer.

[Aljaf90]

1 hour ago, wecpc said:

Did they ever get back to you and if so what was their answer.

They did. After escalations to their accounting department, they confirmed I was right. Unfortunately they couldn’t budge on offering an additional discount or incentives but did offer me a full refund of my deposit (because of the written email confirmation at time of order).

Due to shortages and increasing lead times, I have decided to just continue with the order anyway - otherwise I’d be overpaying for whatever little remaining stock there is of a pre owned vehicle. 

[STE041]

If your car is going to be over £40k, then the additional £355 applies. That said when I renewed my tax this year the letter received stated £480 for the year yet completing online a day after the letter the renewal was £510 for the year.

You’ll have to sign a declaration when you collect the car if the car is over £40k list.

[Howard G]

Hi all,just collected my ES Premium Edition with sonic platinum paint last Friday.

Had front dash cam fitted,(£275 inc vat)which was on an after sales receipt to keep the price under the £40k,as if it was included on the sales receipt it would of meant the extra VED payments.(that would of meant a very expensive dash cam !!!!!)

Hope this helps somebody 

Cheers Howard