Who would buy new

[PSB1]

For me, as it's such a prime example I wonder why it has ended up with this dealer? Why not pre-reg with Crawley? The fact it's being sold outside the dealer network (even with a warranty) would make me wary.

As far as I am aware, the car was sold within a day of going in the showroom at Crawley (if its the same car). So it has been used in anger since Dec and perhaps was just traded in with the dealer.

Ah, that makes sense. Great spec!

[RIV]

I bought a range rover sport from them, about 6 years ago, they were ok to deal with tbh

[John@mk]

I've been to that dealer to see a SL 65.

I'd give them a wide berth !!

Could you expand on this statement?

still has two and half year warranty .....interesting.

[MikeFish]

Blimey, 3k miles and nearly £30k depreciation
That's £10/mile or £100 for me to go to Waitrose and back !

Wonder if there's a story to this car, as that does seem rather cheap ?
When a deal looks too good to be true, it normally is (especially at a dealer)

Escuse my lack of knowledge, but what does "VAT qualifying" mean on car sales, as I see that fairly often ?

Dealers account for VAT on second hand cars one of 2 ways:

1. If a car is a VAT qualifying car (i.e. was first purchased by a VAT registered organisation) then VAT is included in the purchase price (to the dealer) and the sales price to the customer.

For example: A dealer buys a VAT qualifying car for £11,750, being £10,000 + VAT and then sells it to a customer for £14,000, being £11,915 + VAT. The difference between the VAT on the purchase and the sale is paid to HMRC.

VAT on £10,000 is £1,750. VAT on £11,915 is £2,085. Therefore VAT payable to HMRC is £2,085 - £1,750 = £335

2. If a car is a non-qualifying car (i.e. has at some point been sold to a non-VAT registered organisation) then VAT is deducted from the vehicle margin .

For example: A dealer buys a non-qualifying car for £11,750 and then sells it to a customer for £14,000. VAT is payable out of the difference between £14,000 and £11,750, being £2,250.

£2,250 * .175 / 1.175 = £335

HMRC receive the same amount of VAT irrespective of the car being VAT qualifying or non-qualifying.

Nice explanation and example Paul, but wishful thinking; VAT is now 20%.

[W8PMC]

Blimey, 3k miles and nearly £30k depreciation
That's £10/mile or £100 for me to go to Waitrose and back !

Wonder if there's a story to this car, as that does seem rather cheap ?
When a deal looks too good to be true, it normally is (especially at a dealer)

Escuse my lack of knowledge, but what does "VAT qualifying" mean on car sales, as I see that fairly often ?

Dealers account for VAT on second hand cars one of 2 ways:

1. If a car is a VAT qualifying car (i.e. was first purchased by a VAT registered organisation) then VAT is included in the purchase price (to the dealer) and the sales price to the customer.

For example: A dealer buys a VAT qualifying car for £11,750, being £10,000 + VAT and then sells it to a customer for £14,000, being £11,915 + VAT. The difference between the VAT on the purchase and the sale is paid to HMRC.

VAT on £10,000 is £1,750. VAT on £11,915 is £2,085. Therefore VAT payable to HMRC is £2,085 - £1,750 = £335

2. If a car is a non-qualifying car (i.e. has at some point been sold to a non-VAT registered organisation) then VAT is deducted from the vehicle margin .

For example: A dealer buys a non-qualifying car for £11,750 and then sells it to a customer for £14,000. VAT is payable out of the difference between £14,000 and £11,750, being £2,250.

£2,250 * .175 / 1.175 = £335

HMRC receive the same amount of VAT irrespective of the car being VAT qualifying or non-qualifying.

Nice explanation and example Paul, but wishful thinking; VAT is now 20%.

No credit for me as was simply a Google search, followed by copy/paste so i never checked the figures. I remember those days fondly when VAT was at 15%

[RS6chris!]

Nice!!!

[Mcma1]

Normally when a dealer states vat qualifying the price is ex vat?