HMRC New VAT Rules for PCP & Leases!

[davidmc]

I have had 2 lease companies now say that they can no longer quote or update quotes as their lenders are now reevaluating the GFV and have taken them down so these lease companies can quote. This will cause all quotes to go up.

It seems (could be wrong) to be this new HMRC VAT thing that has caused it

Not sure if they stand by there quotes already issued?

Anyone else get this message?

 

[Tony Hoyle]

It's not exactly a surprise that this was coming so that seems odd that they'd suddenly react now.

 

[DaveW]

I thought it was just because the car specs / prices had changed for the lease companies.

 

[WannabeOwner]

It seems (could be wrong) to be this new HMRC VAT thing that has caused it

There has been some chatter about GFV

Model 3 UK PCP Price Calculator

 

[sam48]

Grim. Becoming increasingly expensive.

 

[mrflux]

I heard back this morning from a leasing company that I'd requested a quote from yesterday -

"due to a funding error the funder has pulled the Tesla offering"

The end of cheaper leasing then?!

 

[TezzyMod3]

FleetSauce has informed me that all quotes given are valid however no further quotes are being done going forward.

I luckily got in hours before.

 

[Neesham1988]

I'm waiting to hear back today hopefully that they will honor the quote they given me. The majority of the paperwork was completed a week ago so I'm hoping they will honor it.

My finance is with leasehub. Do they have any legal obligation to honor it?

Fingers crossed.

 

[TezzyMod3]

The contract I signed says they can cancel at any time with no penalty. Doubt anyone is safe until the cars are delivered.

 

[Christophe81]

Surely the tax changes should impact all leases, not just Tesla?
There are still reasonably good lease deals to be had on a lot of cars, albeit not as good as a few years back

 

[davidmc]

It was caused by Mercedes!

It had already started to filter through on all deals. Look at the Nissan Leaf on their website and you can see the PCP deal for that is now 650 a month with 10% deposit. Car is being calculated at 30% gfv. I think it was a lot higher last week around 40-50%

 

[Tony Hoyle]

Lol 650 a month for a leaf.. yeah.. keep taking the tablets..

 

[davidmc]

Sorry £630 with 10% down (£3518)

E+ Tekna on a 38 month PCP (20k miles)

£35,895 (inc £3500 GOV grant)

Balloon at the end is £13,884

It was a vitamin!! Honest!

 

[Tony Hoyle]

Wow. They'll sell.. dozens...

I owned a leaf for 3 years. It's a nice enough car, but it isn't in that kind of price bracket.

 

[Matt125]

DriveElectric have told me they will honour the quote they gave me for a Model 3 SR Plus Metallic Blue paint (£415.51 a month for 24 months, £3,739.59 initial rental).

The leasing itself is going through Leaseplan, I still need to complete all the agreements. It's all done online. I had to edit one of the forms because it had the wrong phone number, waiting for the docs to appear again...

 

[gangzoom]

Sorry £630 with 10% down (£3518)

E+ Tekna on a 38 month PCP (20k miles)

£35,895 (inc £3500 GOV grant)

Balloon at the end is £13,884

It was a vitamin!! Honest!

WTF!! So £730/month including the deposit!!

That's 360% more expensive than our old Leaf PCP deal back in 2015.

Surely this is going to kill all new PCP deals in the UK?

 

[DJP31]

Surely this is going to kill all new PCP deals in the UK?

Looks like it with GFV’s that low. I routinely configure the same Model S whenever there’s a change (which is pretty often!). The monthly payment has increased by £255 .

It’s to do with VAT and if the GFV is too high nobody buys the car, so HMRC are saying that’s a lease then. The VAT treatment isn’t as favourable, although I don’t understand the difference myself.

Whether the GFV’s are ultra low at the moment just to be on the safe side who knows, but at the moment the numbers are ugly.