Quote:
Originally Posted by AlanQS
Maybe, but I always thought that dealers could either charge VAT on the whole price of a second hand car or just VAT on their margin - considerably less.
If that is true, then why would turkeys vote for Christmas and a dealer charge more for a car than he wants to and the extra cash all goes to the VAT man.
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When you select the car on the systems you can select VAT Qualifying you'll still see the headline price but you'll notice the VAT Q status I think on BMW's site noted it'll still be the same price but people who can benefit from a car thats a qualifying car can easily earmark one from one that's not meaning that they can benefit from the cars qualifying status. I don't know how or what format you load up the prices on BMW's site it may roll the price down when VAT's added I don't know or someone could of divided the £17995 figure by 1.20% (VAT rate) which equates to £14995, but it'll explain the jump as such, but its not £3500 so perhaps while amending the status they also re jiggled the price to reflect what they wanted for the car either that or perhaps it had a bigger prep bill than the sales department had calculated.
Ex BMW UK and Dealer Demo's will benefit from this status for instance but a privately owned car of course won't. You pay margin VAT on the difference between the cars purchase price and what it was sold at, but how this works and how you can manipulate this in terms of over allowing on a part exchange is another subject for another topic.
Sadly I've not spoken to any turkeys re how they'd like to vote, suspect though hat like the VAT man Christmas isn't their favourite subject.