D0 I cancel my order?

[Jerboa]

Good afternoon/evening everybody.

I'm in need of some advice and I'd be very grateful for some input from UK grenadier owners/forum members.

We placed an order for a Grenadier through work in summer last year. Back then things were good - we had plenty of orders in and six months work booked in. Time for contract signing came up and we did so. The vehicle would be used primarily for work by employees for towing plant/a digger.

In between then and now our circumstances in the business (that my wife and I own and operate) changed significantly, and three major contracts cancelled/postponed which has radically changed our short-term financial position. We can't afford to take a wanted, but not needed asset such as this on.

My choices as I see it:

1. Suck it up and sack it off. Goodbye to the £2.5k deposit. Fairly significant sum. INEOS will likely take it back from the dealer and I'd expect sell for its now current list price of £78.3k - it has gone up since we ordered. .

2. Take finance out on it, take delivery of it then immediately store it at our unit and list it for sale putting no miles on whatsoever. Finance is now the only way we can take this vehicle on. We would do this in order to get our £2.5k deposit back. For that to happen, we would need to sell it for the price that we're paying (£70.3k) plus the early settlement fee (£2.5k?) on the finance deal. I'm not clear yet as to what this would be - I've not yet explored the finance option - but things get complex with tax, BIK etc. here.

3. Keep it. This again involves finance and monthly payments of perhaps £1200/month and a sizeable deposit (to cover the VAT, its a business purchase). I have confidence in the medium/long-term viability of the business. But cash-flow at the moment means finance is the only option. Not ideal.

My question then, revolves around option 2. Could I ask everyone what its immediate value would be if we were to sell it straight away? Is there a market for it like this (i.e. not from a dealer?). Our dealer thinks this is our best bet. But they just want to sell/shift vehicles. Or do I have a depreciation risk that would write this off?The vehicle is due for delivery soon.

For an idea of spec:
Utility in 3.0D.
N1 Comnercial.
Magic Mushroom.
Rough-pack pack with F+R diff locks and 17" BFG ATs on Steel Wheels
Smooth pack with rear view camera etc.
Inky-black roof with full length roof rack.
Rear side panels instead of windows
Standard interior trim with heated seats (I'm not interested in leather seats and sterirng wheels)
Batwing awning.
Utility belt
Interior Load Bay Rails
Rear door tray and lockable spare wheel locker.
Rock Sliders
Rear Ladder
Raised Air Intake
Tow Pack
High-Load Accessory power pack

I didn't elect to get the winch as, where I have been in the past and intended to go in the future, they're next to useless (deserts etc) or alloy wheels (which you can't straighten out in the bush). I also didn't get the roof rack jerry can carriers because everyone knows thats the worst place to carry them. Unless they're empty!

My background btw, before anyone considers me a chelsea tractor driver/poser; I've had 7 Land Rovers over the last 20+ years - all pre-2000 generation. I've done multiple self-supported expeds in Eastern Europe and the Caucasus region, Middle East and North Africa. I was looking for my next expedition vehicle - hence the spec above. I'm very hands on maintenance-wise (that's land rovers for you), and the ethos behind the Grenadier and its design philosophy - well, there's not another vehicle I would rather have right now. I could not care less for any of LR's current crop of vehicles and have completely washed my hands of the brand. This vehicle was meant to work.

I have relative confidence about its value, but could do with a second opinion about the risk I could be undertaking just to get my 2.5k back.

TIA,

Jerboa

 

[Trialmaster]

Extremely difficult decision. I think having it delivered and then selling is a huge risk. Prices have now stabilised and tend to be dropping.

I think the safe option is loose the £2500 even though its a hard pill to swallow.

 

[terdrocket]

I think that you need to adjust your thought process just a bit. The 2500 is gone whether you purchase or walk away. The question is to either- 1 take on further debt on a depreciating asset, use it and generate revenue to pay, 2 take on the same debt to resell with risk of losing more, or 3 walk away with no further dent in the balance sheet.
The carrot of the possible "wholeness" of option 2 is the same as the gambler not walking away in time. Everyone wants that winning feeling. The question is it worth the risk to you?

 

[Sam]

So spend 70k to save 2.5k, potentially? I say cancel... or discuss with (an actual person at) Ineos if you can defer by a year or so?

Deferment is a better outcome for both parties, than cancelation. (Has anyone yet lost their deposit via a cancelation?)

 

[Baron von Teuchter]

Tricky one.

I’d go back to first principles, do you need it? Do you want it?

I think you’ll struggle to sell it privately for anywhere near 70k. I was in the market for one in the last few months and saw an almost perfect spec one for sale privately for £65k with 2000 miles but I elected to pay an extra £5k for one with 100 miles on it from a dealer. If the private one had been £60k (£10k saving) I might have gone for it.

Might be worth a discussion with the dealer - can they sell it for you? Be open and honest with them.

 

[jamesfielding]

Are you able to sell another vehicle for cash flow / fund the deposit and make enough for the £1,000 per month?

 

[AMD66]

I agree with BVT , selling it privately at £70k is a big ask as dealers selling them near that will offer some comfort with a new product !
Cancel- manage your risk and then you can move on.

 

[Baron von Teuchter]

For what it’s worth, I placed a deposit on one when they were first announced but pulled the order when I realised it wasn’t a commercial vehicle for BIK. Then I ended up buying one privately anyway but the price had gone up so I paid £10k more (would have been £20k more if it was brand new). I wish I’d kept my original place in the queue. I would have got the vehicle sooner, at a lower price and the exact spec I wanted instead of a close spec.

Try to think about the future, when business picks up will you buy one anyway? The price rises will continue, the future model year vehicles will get more and more tech to comply with regs.

If you think you will buy one anyway I’d just do it now.

 

[lightning]

Why don't you speak to the dealer and see if they have another customer for it, that way you'll get your deposit back possibly minus a smaller charge

 

[Trialmaster]

I know that the dealer is out of the loop regarding the £2500 deposit in the UK. Once the £2500 has been paid as a deposit it is unrefundable.

 

[lightning]

For what it’s worth, I placed a deposit on one when they were first announced but pulled the order when I realised it wasn’t a commercial vehicle for BIK. Then I ended up buying one privately anyway but the price had gone up so I paid £10k more (would have been £20k more if it was brand new). I wish I’d kept my original place in the queue. I would have got the vehicle sooner, at a lower price and the exact spec I wanted instead of a close spec.

Try to think about the future, when business picks up will you buy one anyway? The price rises will continue, the future model year vehicles will get more and more tech to comply with regs.

If you think you will buy one anyway I’d just do it now.

How did you get around BIK and tax? Did you just charge the business for mileage?

l don't think prices will rise any more. £75,000 is a lot of money and if it gets any more expensive l think sales will fall away.

 

[lightning]

I know that the dealer is out of the loop regarding the £2500 deposit in the UK. Once the £2500 has been paid as a deposit it is unrefundable.

But if the dealer has another customer at the full list price they might refund at least some of the deposit.

 

[Trialmaster]

But if the dealer has another customer at the full list price they might refund at least some of the deposit.

In an ideal world...........however, I am 100% positive that it will not happen. Hope to be proved wrong though!

 

[Baron von Teuchter]

How did you get around BIK and tax? Did you just charge the business for mileage?

l don't think prices will rise any more. £75,000 is a lot of money and if it gets any more expensive l think sales will fall away.

No I just bought it personally instead of through the company.

 

[Lord Ripon USA]

Just talk to the dealer and walk away.

You Are taking the long way around the barn. Far easier for you to recover 2500 pounds doing your normal line of work, than it is getting into the used car business where time is your enemy.

 

[ADVAW8S]

Walk away and I assume you can use the 2500 loss against you taxes.

 

[SBA]

Very Difficult decision I would say ask the dealer under difficult circumstances you are wanting to delay have you signed the final contract? have they built to exact specification you ordered and if all fails "email Sir Jim"

 

[Scotsitalian]

I’m not an accountant but im married to the
worst of all evils, an aberdonian accountant !
You stated you placed the order through work so cancel the order and write off the loss against your pre-tax profits to reduce your corporation tax bill if you have one ! Or… if you report a loss for this year to HMRC, then you will get a refund if you reported a profit last year
eBay is showing several delivery mileage Grenadiers at significant discounts so I would not buy it under any circumstances unless it pays for itself.

 

[Jerboa]

Hello All,

Thank you for your considered and constructive replies.

The obvious thing here is to turn my back on it - and the deposit..

Ah well, some time in the future things will be different..

Thanks agin,

Jerboa

 

[DaBull]

Hi Jerboa, You made the right decision for your situation. Wishing you the very best in the New Year. DaBull