E Coupe VAT Price Increase

[Jules335]

Just had a look on the Mercedes website and they now have the new price list for the E Class Coupe, (and probably other models as well).

The prices have increased by more than the VAT change and so Mercedes are obviously taking advantage of the situation and have added a bit more on as well.

I can't imagine that there are buyers queuing up at the moment and so it seems a strange decision in the current climate.

 

[Pappilo]

I have just had a look at the price rises and boy! have prices gone up or what?

Based on the new prices my car will cost £35,800 without any discounts (bog standard E200 CGI, auto and metallic paint). I dont expect anyone to pay the advertised prices but considering that I bought my car for £30,125 1 year ago, does that mean I may be able to get back all what I payed for the car originally if I sold my car today? :bannana:

 

[talleres]

Lots of retailers are going to raise prices, as well as add VAT.

When I ordered my car (Sept), the quote came with a disclaimer for the extra VAT if delivery went into this year. I took that as something of a warning to make sure I did take delivery. However, I said I also expected price rises in 2011 and not one salesman denied this. So maybe there'll be yet another rise in 2011 to add to this one.

They'll still sell cars though. Their subsidised finance deals and updates/additions to the spec are an effective hook.

 

[Wing Co]

Prices up, re-sale/px up. Bit like house prices my house is worth £.........oh yeah unless you don't plan to get another you just got to pay more for the next one. At least with houses they offer some security for your £. Cars, however, they are designed to make, mainly men, waste thousands of pounds on style, performance, etc when we all know we could cope with a Kia! Are well I am off to M-B website to spec my 2012 E Class Convertible for when I sell mine with an anticipated whopping 8000 (very enjoyable) miles on the clock!

 

[kusanku]

Not just car retailers. Went to the canteen at work today to find that they have put up all their prices by 5-10%. A bottle of coke cost me £1.05 last week, and £1.15 today.

 

[LTD]

To maintain a % profit margin, prices must increase more than the VAT change.

 

[mbenz76]

MB put their prices up in the new year last year and I was told when I ordered my car in December 2009 that should MB increase the price (which they fully expected them to) that I would be asked to pay the difference on delivery.

I was hit with the double whammy last year - MB increase and VAT back to 17.5%.

Does nothing ever go down in price?

At the end of the day, the relative % increase is unlikely to put most people off buying a luxury brand car.

 

[LTD]

At the end of the day, the relative % increase is unlikely to put most people off buying a luxury brand car.

Considering the VAT increase will affect virtually everything we buy, it might be the difference between buying or not for some.

Even non-food items like food will be affected as fuel costs and vehicle maintenance will attract more expense.

 

[mbenz76]

Considering the VAT increase will affect virtually everything we buy, it might be the difference between buying or not for some.

Even non-food items like food will be affected as fuel costs and vehicle maintenance will attract more expense.

If 2.5% is the difference between being able to afford an MB or not, then people should really not be considering the purchase any way - your free cash should be way more than 2.5% to be in the market for a car of any brand.

 

[LTD]

If 2.5% is the difference between being able to afford an MB or not, then people should really not be considering the purchase any way - your free cash should be way more than 2.5% to be in the market for a car of any brand.

In reality, it will be more like 4% more expense on your free capital - across the board.

Couple that with the expected rise in inflation as a direct result, mortgage base rate rise increase for the same reason and the very real threat of another recession means many people will be a lot poorer than last week.

To quote Winston Churchill

"We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle"

 

[Sonny Burnett]

what is this Vat increase you all are worrying about....lol
its thread like these that makes you go grey at 25...
dont worry about it gents... worrying wont change anything..

 

[Rory]

They'll still sell cars though.

Less cars though. MB UK didn't have good 2010 and I can't see 2011 being a good year for new car sales.

 

[Dryce]

To maintain a % profit margin, prices must increase more than the VAT change.

Why?

VAT makes no difference to net margins.

 

[Dryce]

Considering the VAT increase will affect virtually everything we buy, it might be the difference between buying or not for some.

Even non-food items like food will be affected as fuel costs and vehicle maintenance will attract more expense.

It's noticable that service providers with customers on DDs have zero compunction regarding adding the VAT. There's zero incentive to hold price points if the customer is already signed up.

Retailers OTOH have a bit of a dilemma because the customer hasn't bought (yet). But once they decide to move prices then they may rise by less or more to try and hold price points (so if £199.99 is important they might hold, or if they have to give it up there's a tendency to go "what the hell" and raise to another price point such as £209.99 - way more than the VAT rise).

I would guess that MB have gone down the latter route "what the hell?" and loaded the price lists. Take the pain and raise list prices so that if sales dip for a few months they hold margins - with the option of discounting or giving back via finance packages.

 

[Dryce]

Couple that with the expected rise in inflation as a direct result, mortgage base rate rise increase for the same reason and the very real threat of another recession means many people will be a lot poorer than last week.

Bit of a witching hour.

There's been a bit of a phoney war on the economy for the last couple of years - absurdly low base rates - public spending cuts being held off - quantitative easing (printing money) - VAT stimulus - job losses not quite as bad as one might have expected. But public debt also still shooting up.

Now things get serious.

Real cuts. More job losses. More taxes. Less money. Attempt to get the public debt under control instead of just talking about it.

 

[kwakdonut]

Even non-food items like food will be affected as fuel costs and vehicle maintenance will attract more expense.

Huh?!!! I had to read that several times before I realised you left a comma out!!

I just love the way that my local pub chain are screaming that 'no VAT increase on food' - well of course not, food isn't VAT-able!!

Yes, of course fuel will go up to pay transport costs etc but that's just plain daft....

 

[hawk20]

Cheer up all. The govt is still spending way more than it raises in taxes -and is borrowing bucketfuls of money every month to pay for the surplus spending. It is just borrowing a bit less than the last lot.

One day someone will have to pay it all back. But we are not doing that yet awhile.

 

[tagnut]

I just love the way that my local pub chain are screaming that 'no VAT increase on food' - well of course not, food isn't VAT-able!!

They don't pay VAT on the raw ingredients but have to charge VAT on all meals sold.

 

[kwakdonut]

They don't pay VAT on the raw ingredients but have to charge VAT on all meals sold.

Can someone explain why? I run our tea bar at work and we sell a popular brand of 'ready to microwave' burgers, subs etc - these are 'prepared' foods but not subject to VAT?

 

[tagnut]

Can someone explain why? I run our tea bar at work and we sell a popular brand of 'ready to microwave' burgers, subs etc - these are 'prepared' foods but not subject to VAT?

I don't know, is it that a company cafeteria/tea bar provided for staff isn't subject to VAT at all?

I own a pub with my brother which is a food led operation and all meals that we sell are subject to VAT.