Europe Dealer on the road fees (UK)

Leapoffaith · Aug 6, 2022

I was confirming some changes with my dealer the other day and he mentioned the £2.5 k ish on the road fees charged by the dealer to put the number plates on etc.
As I don’t buy new cars very often it took me by surprise a little, maybe I should get out more!
Anyway, might be a chance for one of our dealers to explain so we are all prepared to ask our bank manager for some more cash

Cheers

Michael H. · Aug 6, 2022

Leapoffaith said:
I was confirming some changes with my dealer the other day and he mentioned the £2.5 k ish on the road fees charged by the dealer to put the number plates on etc.
As I don’t buy new cars very often it took me by surprise a little, maybe I should get out more!
Anyway, might be a chance for one of our dealers to explain so we are all prepared to ask our bank manager for some more cash
Cheers

Here are all the on road costs for Australian buyers.

Tazzieman · Aug 6, 2022

Stamp duty = euphemism for TAX

Leapoffaith · Aug 6, 2022

Very interesting, thanks

emax · Aug 6, 2022

Tazzieman said:
Stamp duty = euphemism for ~~TAX~~ robbery

Greg · Aug 6, 2022

Yes - considering the Goods and Services Tax (GST) introduced by the Conservative (think the Tories or Trump) government of the time was supposed to eliminate these State taxes...

Halliwell Jones Chester · Aug 6, 2022

Leapoffaith said:
I was confirming some changes with my dealer the other day and he mentioned the £2.5 k ish on the road fees charged by the dealer to put the number plates on etc.
As I don’t buy new cars very often it took me by surprise a little, maybe I should get out more!
Anyway, might be a chance for one of our dealers to explain so we are all prepared to ask our bank manager for some more cash
Cheers

This is completely normal, UK is called OTR "on the road" costs.
Delivery (form Manufacturer)
First reg fee (Government)
First year road fund license (road tax) (Government)
Fuel (petrol station)
Plates (normally dealer)

Technically only charge the dealer charges, is for the number plates, everything else is none dealer.

Not passing the buck by the way, just explaining were the costs come from.

Steve.

USandPR · Aug 6, 2022

Halliwell Jones Chester said:
This is completely normal, UK is called OTR "on the road" costs.
Delivery (form Manufacturer)
First reg fee (Government)
First year road fund license (road tax) (Government)
Fuel (petrol station)
Plates (normally dealer)

Technically only charge the dealer charges, is for the number plates, everything else is none dealer.

Not passing the buck by the way, just explaining were the costs come from.

Steve.

Correct, same in US. The only variable is what a dealer charges for their services to do all of that for you. That dealer fee is outside of the set fees (% of sale for taxes etc) it varies by dealer. I have seen $150 fees for the dealer handling the paperwork to $1500 dealer fee. That is additional profit above the sale of the vehicle, however, they charge the same (at least in US) to each purchaser. By law they have to charge everyone the same for dealer fees and it can not be negotiated. If you don't like the dealer fees you need to negotiate a better price on the vehicle. I was a notary for a family car business and helped process some of that paperwork and dealt with the Department of Motor Vehicles as was licensed as a salesman meaning I had to know the laws and regulations around it. It applies to used cars as well except you would not have the "delivery" but they might call it "vehicle prep".

Leapoffaith · Aug 6, 2022

Halliwell Jones Chester said:
This is completely normal, UK is called OTR "on the road" costs.
Delivery (form Manufacturer)
First reg fee (Government)
First year road fund license (road tax) (Government)
Fuel (petrol station)
Plates (normally dealer)

Technically only charge the dealer charges, is for the number plates, everything else is none dealer.

Not passing the buck by the way, just explaining were the costs come from.

Steve.

Thanks Steve
Yes, as you say normal but I suppose some of us may have forgotten if we hadn’t bought new for a few years
Do you mind giving us an approximate figure this will be ( we won’t hold you to it!

)
Enjoy the weekend
Cheers

Halliwell Jones Chester · Aug 6, 2022

Leapoffaith said:
Thanks Steve
Yes, as you say normal but I suppose some of us may have forgotten if we hadn’t bought new for a few years
Do you mind giving us an approximate figure this will be ( we won’t hold you to it! )
Enjoy the weekend
Cheers

I would say someone who has placed the full £2,500.00 deposit will have exact figures for you as this will be on the order form. I have seen a couple but not really looked into to much.

BMW delivery has been £850.00 including plates, first reg fee has been £55.00, we normally put £50.00 fuel in unless customer requests more.

As for the road fund license, if it's none commercial then it would be £2,365.00 for vehicles over 255g/KM then £520.00 per year for the next 5 years you personally tax the car (from year two to six)

Private light goods vehicles are taxed differently though as commercial. See tables below, hope this helps.

Stu_Barnes · Aug 6, 2022

Thread moved to European network. Title changed to reflect uk

DCPU · Aug 6, 2022

Halliwell Jones Chester said:
This is completely normal, UK is called OTR "on the road" costs.
Delivery (form Manufacturer)
First reg fee (Government)
First year road fund license (road tax) (Government)
Fuel (petrol station)
Plates (normally dealer)

Technically only charge the dealer charges, is for the number plates, everything else is none dealer.

Not passing the buck by the way, just explaining were the costs come from.

Steve.

Steve

That's not reflective of what we are due to be charged.

I've not got the exact details in front of me right now, but I thought there were more charges that looked to be agent based.

Halliwell Jones Chester · Aug 6, 2022

DCPU said:
Steve

That's not reflective of what we are due to be charged.

I've not got the exact details in front of me right now, but I thought there were more charges that looked to be agent based.

I'd have to have an in depth look at the order form, as 99% of people have probably ordered online themselves and not in a dealer I can only go off what a normal car is for on the road charges.

Are you UK based?
You can private message me your order if you want and I can take a closer look at it.

DCPU · Aug 6, 2022

Yes UK based.

I'll dig the OTR costs out when back at base and I'm happy to put them up here.

DCPU · Aug 7, 2022

So in the UK, I've got six cost headings against On the Road costs - they may be listed separately on people's paperwork if VAT has been itemised separately as a lump sum* - here the figures below are all VAT inc:

1. Delivery Fee - £280.00
2. Pre-delivery Inspection (PDI) - £220.00
3. Number Plate Registration - £24.00
4. Fuel - £100.00
5. DVLA Registration & Vehicle Excise Duty (12 Month VED) - £2,300 (for M1) & £315.00 (for N1)
6. Registration - £200.00

Obviously, some of these costs are fairly self-explanatory, but what is item 6?

Additionally, item 5. doesn't seem to correlate to current VED rates.

* There's an additional query as to whether VED is a VATable supply? It clearly has been included in the VAT subtotal.

Halliwell Jones Chester · Aug 7, 2022

Thanks for this @DCPU first of all delivery seems extremely low!!

6 Registration, I'm wondering whether this is including first reg fee as item 3 number plate registration is what we normally charge for the physical "plates" at BMW but 5 says DVLA registration

RFL does seem to be out aswell, although not by a lot.

I will definitely ask for some clarification on what these costs entail.

Sorry I can't give you a better explanation than this right now but this model is new to me aswell.

* I'm 99% certain that RFL is a VAT exempt product.

DCPU · Aug 7, 2022

I didn't think VED was VATable.

It makes no difference to the final cost to owners ~ but must make a headache for Ineos accountants reconciling the VAT account!

DCPU · Nov 11, 2022

Halliwell Jones Chester said:
Sorry I can't give you a better explanation than this right now but this model is new to me aswell.

So current final contract details look like this for OTR costs all/most ex VAT:

Does the fuel line mean we get £83.34 at the pump and then it's deemed a VAT able service filling the tank and we pay £100; or are we getting £100 at the pump? Hopefully, it's not like the hire car companies that charge £3.00 a litre if you leave any space in the top of the tank. Do you know what you are being told to do by Ineos?

The registration fee (Inc VAT) now amounts to the correct total for N1 VED & first registration fee, although the Inc VAT bit is more than confusing for a non rated item.

So do you know what the first registration fee is for? It's £200 once you add the VAT on.

Is it a fee for an annual subscription to CAD-IT?

Halliwell Jones Chester · Nov 11, 2022

DCPU said:
So current final contract details look like this for OTR costs all/most ex VAT:

View attachment 7795833

Does the fuel line mean we get £83.34 at the pump and then it's deemed a VAT able service filling the tank and we pay £100; or are we getting £100 at the pump? Hopefully, it's not like the hire car companies that charge £3.00 a litre if you leave any space in the top of the tank. Do you know what you are being told to do by Ineos?

The registration fee (Inc VAT) now amounts to the correct total for N1 VED & first registration fee, although the Inc VAT bit is more than confusing for a non rated item.

So do you know what the first registration fee is for? It's £200 once you add the VAT on.

Is it a fee for an annual subscription to CAD-IT?

The fuel I would imagine would be £100.00 at the pump, not been told anything official on this though but I would have thought this would be the case.

First reg fee is still confusing me a little to be honest but we will find the answer out.

I think your suggestion of annual subscription of CAD-IT is just you wanting it now and probably willing to pay for it to see it ha ha

Out of curiosity, who is your agent? Just incase you're at Chester I'll clear the whole day for you lol.

DCPU · Nov 12, 2022

Halliwell Jones Chester said:
The fuel I would imagine would be £100.00 at the pump, not been told anything official on this though but I would have thought this would be the case.

First reg fee is still confusing me a little to be honest but we will find the answer out.

I think your suggestion of annual subscription of CAD-IT is just you wanting it now and probably willing to pay for it to see it ha ha

Out of curiosity, who is your agent? Just incase you're at Chester I'll clear the whole day for you lol.

All these are questions for Ineos really ~ as it's them that want me to pay ~ but as always your intervention is appreciated and I have not that much faith in the Customer Service facility to provide correct answers.

Given I'm already supposed to be in possession of a hard copy of the Owner's Manual, I thought the CAD-IT system would be the repository for the the website version I'm also supposed to be able to see now.

Clearing the whole day is a very nice offer, but if I told you my collection date you'd only book it as annual leave.

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