Fleet News

Car makers to scrap delivery charges

CAR manufacturers are to abolish delivery charges and instead incorporate the average £400-£500 figures in on-the-road prices. The industry-wide move is expected to be announced on behalf of all manufacturers by the Society of Motor Manufacturers and Traders, possibly at the Motor Show which opens in Birmingham on October 15.

Fleet News understands agreement for the move was reached at a meeting of the SMMT's car section last week and follows a concerted campaign by fleet industry groups such as the Association of Car Fleet Operators and the British Vehicle Rental and Leasing Association.

It is understood that the manufacturers will quote on-the-road pricing in all advertising, which will see delivery charges incorporated into the list price of vehicles. It is expected that most manufacturers will publish price lists showing the cost of the vehicle, plus VAT, plus delivery charge to arrive at the on-the-road price.

Earlier this year Rover became the first of the 'big four' manufacturers to scrap separate delivery charges and adopt on-the-road pricing with all literature featuring two figures - a delivered price including VAT, delivery, number plates and initial servicing and an on-the-road price plus a year's road tax (Fleet News May 31). In addition Volkswagen, Saab, SEAT, Proton and Skoda already quote on- the-road pricing and Daewoo launched into the UK without introducing delivery charges.

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