Anyone Interested in a New BMW Next Year?

[kinboshi]

if you bought the first mini, 206cc, possibly audi R8 and some other uber desirable new cars when they first came out and kept it for a year you wouldn't lose the VAT which indicates to me that a used car is worth what someone is prepared to pay for it and has absolutely nothing to do with how much tax was paid to the government when it was new.

You're right about ultra-desirable cars holding an inflated value - sometimes a value that exceeds the price of the new car including VAT.

But for the majority of cars (including the one in question), the resale value of the car after purchase is definitely minus VAT.  Dealers definitely sell 'nearly new' cars at massive discounts that take into account the lack of VAT.

[kinboshi]

Also, why buy a new car if you will be getting rid of it in 12 months?

As well as the depreciation, you lose the VAT as soon as you drive it out of the showroom.  That's 17.5% down the pan immediately.

If you're only having it for a year, have you not considered leasing?

He is leasing it. That's why he's got a guaranteed buy back price.

Put your deposit down (same as your 3 months up front payments on a lease but more expensive) Pay £xxx/m to fund the depreciation (usually costs about the same as a monthly lease). Guaranteed buy back should cover a portion of your deposit because it should be more than the car's actually worth so you've got some to put down on yuor next car.

It's more or less the same.

He's not leasing it though, is he?.  With a lease car you never own it - it belongs to the leasing company and at the end of your lease you hand it back and that's the end of it.

[byronkincaid]

if you bought the first mini, 206cc, possibly audi R8 and some other uber desirable new cars when they first came out and kept it for a year you wouldn't lose the VAT which indicates to me that a used car is worth what someone is prepared to pay for it and has absolutely nothing to do with how much tax was paid to the government when it was new.

You're right about ultra-desirable cars holding an inflated value - sometimes a value that exceeds the price of the new car including VAT.

But for the majority of cars (including the one in question), the resale value of the car after purchase is definitely minus VAT.  Dealers definitely sell 'nearly new' cars at massive discounts that take into account the lack of VAT.

if a dealer sells a nearly new car at a massive discount it is because he doesn't think he can sell it at a higher price due to supply and demand. Pre registered cars still have VAT on them anyway!

you are saying that cars are the only goods in the world that don't get priced due to supply and demand but by some mysterious formula that means the VAT must be taken off except on all these previously mentioned cars where for some reason it didn't have to be.

[kinboshi]

if you bought the first mini, 206cc, possibly audi R8 and some other uber desirable new cars when they first came out and kept it for a year you wouldn't lose the VAT which indicates to me that a used car is worth what someone is prepared to pay for it and has absolutely nothing to do with how much tax was paid to the government when it was new.

You're right about ultra-desirable cars holding an inflated value - sometimes a value that exceeds the price of the new car including VAT.

But for the majority of cars (including the one in question), the resale value of the car after purchase is definitely minus VAT.  Dealers definitely sell 'nearly new' cars at massive discounts that take into account the lack of VAT.

if a dealer sells a nearly new car at a massive discount it is because he doesn't think he can sell it at a higher price due to supply and demand. Pre registered cars still have VAT on them anyway!

Wasn't talking about pre-reg.

you are saying that cars are the only goods in the world that don't get priced due to supply and demand but by some mysterious formula that means the VAT must be taken off except on all these previously mentioned cars where for some reason it didn't have to be.

I'm not saying that cars are the only product that is affected by VAT.  It's usually the most expensive product that people buy that is though.  That's why it's more relevant.

[EvilPie]

Also, why buy a new car if you will be getting rid of it in 12 months?

As well as the depreciation, you lose the VAT as soon as you drive it out of the showroom.  That's 17.5% down the pan immediately.

If you're only having it for a year, have you not considered leasing?

He is leasing it. That's why he's got a guaranteed buy back price.

Put your deposit down (same as your 3 months up front payments on a lease but more expensive) Pay £xxx/m to fund the depreciation (usually costs about the same as a monthly lease). Guaranteed buy back should cover a portion of your deposit because it should be more than the car's actually worth so you've got some to put down on yuor next car.

It's more or less the same.

He's not leasing it though, is he?.  With a lease car you never own it - it belongs to the leasing company and at the end of your lease you hand it back and that's the end of it.

Yes he is. It's called a finance lease. It's how I got mine. Works out much better than buying outright and best for a car about 1 year old due to depreciation being about 25% in year 1 and only about 5% in each of years 2 and 3.

He'll never own it outright unless he's very very silly. That's the whole idea. It won't be financially viable to buy it in full after the lease term because BMW will give you more than it's worth anyway. The only way you'd possibly buy it is if it was worth more than the buy back price but that ain't happening.

[Geo the Sarge]

you lose the VAT as soon as you drive it out of the showroom.  That's 17.5% down the pan immediately

never understood why people say that. If I'm first in the queue to get a UK GTR and I sell it the next day, will I lose the VAT?

Buy it from Japan - it's cheaper (even with all the import costs).  Anyway, isn't the GTR an exception as demand will initially be higher than supply?  I'm sure that's not the same case with a BMW estate.

And yes, you will lose the VAT.  If you're planning on buying a car to be selling it in a year you don't just need to look at the cost of purchase do you?  You need to look at the depreciation so that when you sell it in 12 months time and want to buy something else, you work out the effective cost at that time.

Actually, with Lee VAT might not come into it.  Do soldiers get an exemption?

In a word, yes.

Been a while since I was in Germany, however soldiers can buy cars in Germany and other countries tax free (they need tokeep it in the country they purchased it for a minimum of 12 months.) Can't remember all the ins and outs but I would imagine Lee would purchase from a dealer in Germany tax free and at a far cheaper price than buyimg in the UK before tax.

Again I would imagine the reason for picking up in Britain is that he has bought a right hand drive. Therefore even after depreciation of approx  17.5% as you quite rightly say at just leaving the showroom he will still have paid far less.


I remember soldiers living in Germany who wanted to buy a new Volvo would actually be given a paid weekend by Volvo to travel to Sweden to visit th factory and test drive and choose colur/furnishings etc. They'd also get another free trip to go to collect the car when it was ready.

Soldiers eh, they get a rough ride.

Geo

[kinboshi]

you lose the VAT as soon as you drive it out of the showroom.  That's 17.5% down the pan immediately

never understood why people say that. If I'm first in the queue to get a UK GTR and I sell it the next day, will I lose the VAT?

Buy it from Japan - it's cheaper (even with all the import costs).  Anyway, isn't the GTR an exception as demand will initially be higher than supply?  I'm sure that's not the same case with a BMW estate.

And yes, you will lose the VAT.  If you're planning on buying a car to be selling it in a year you don't just need to look at the cost of purchase do you?  You need to look at the depreciation so that when you sell it in 12 months time and want to buy something else, you work out the effective cost at that time.

Actually, with Lee VAT might not come into it.  Do soldiers get an exemption?

In a word, yes.

Been a while since I was in Germany, however soldiers can buy cars in Germany and other countries tax free (they need tokeep it in the country they purchased it for a minimum of 12 months.) Can't remember all the ins and outs but I would imagine Lee would purchase from a dealer in Germany tax free and at a far cheaper price than buyimg in the UK before tax.

Again I would imagine the reason for picking up in Britain is that he has bought a right hand drive. Therefore even after depreciation of approx  17.5% as you quite rightly say at just leaving the showroom he will still have paid far less.


I remember soldiers living in Germany who wanted to buy a new Volvo would actually be given a paid weekend by Volvo to travel to Sweden to visit th factory and test drive and choose colur/furnishings etc. They'd also get another free trip to go to collect the car when it was ready.

Soldiers eh, they get a rough ride.

Geo

There have to be some perks to risking your life for the sake of others!

[kinboshi]

Also, why buy a new car if you will be getting rid of it in 12 months?

As well as the depreciation, you lose the VAT as soon as you drive it out of the showroom.  That's 17.5% down the pan immediately.

If you're only having it for a year, have you not considered leasing?

He is leasing it. That's why he's got a guaranteed buy back price.

Put your deposit down (same as your 3 months up front payments on a lease but more expensive) Pay £xxx/m to fund the depreciation (usually costs about the same as a monthly lease). Guaranteed buy back should cover a portion of your deposit because it should be more than the car's actually worth so you've got some to put down on yuor next car.

It's more or less the same.

He's not leasing it though, is he?.  With a lease car you never own it - it belongs to the leasing company and at the end of your lease you hand it back and that's the end of it.

Yes he is. It's called a finance lease. It's how I got mine. Works out much better than buying outright and best for a car about 1 year old due to depreciation being about 25% in year 1 and only about 5% in each of years 2 and 3.

He'll never own it outright unless he's very very silly. That's the whole idea. It won't be financially viable to buy it in full after the lease term because BMW will give you more than it's worth anyway. The only way you'd possibly buy it is if it was worth more than the buy back price but that ain't happening.

Lease purchase - as opposed to a lease or contract hire (where you don't get the option to purchase the car at the end).

[Geo the Sarge]

you lose the VAT as soon as you drive it out of the showroom.  That's 17.5% down the pan immediately

never understood why people say that. If I'm first in the queue to get a UK GTR and I sell it the next day, will I lose the VAT?

Buy it from Japan - it's cheaper (even with all the import costs).  Anyway, isn't the GTR an exception as demand will initially be higher than supply?  I'm sure that's not the same case with a BMW estate.

And yes, you will lose the VAT.  If you're planning on buying a car to be selling it in a year you don't just need to look at the cost of purchase do you?  You need to look at the depreciation so that when you sell it in 12 months time and want to buy something else, you work out the effective cost at that time.

Actually, with Lee VAT might not come into it.  Do soldiers get an exemption?

In a word, yes.

Been a while since I was in Germany, however soldiers can buy cars in Germany and other countries tax free (they need tokeep it in the country they purchased it for a minimum of 12 months.) Can't remember all the ins and outs but I would imagine Lee would purchase from a dealer in Germany tax free and at a far cheaper price than buyimg in the UK before tax.

Again I would imagine the reason for picking up in Britain is that he has bought a right hand drive. Therefore even after depreciation of approx  17.5% as you quite rightly say at just leaving the showroom he will still have paid far less.


I remember soldiers living in Germany who wanted to buy a new Volvo would actually be given a paid weekend by Volvo to travel to Sweden to visit th factory and test drive and choose colur/furnishings etc. They'd also get another free trip to go to collect the car when it was ready.

Soldiers eh, they get a rough ride.

Geo

There have to be some perks to risking your life for the sake of others!

remind me to teach you Army humour at luton Dan

Geo

[Ironside]

give him 12 weeks basic he might get an understanding

[Geo the Sarge]

 

[kinboshi]

I was agreeing with you...

[Geo the Sarge]

I was agreeing with you...

then it was I that was whooshed........lol

Maybe you can teach me civvy humour.

Geo

[MPOWER]

if you bought the first mini, 206cc, possibly Audi R8 and some other uber desirable new cars when they first came out and kept it for a year you wouldn't lose the VAT which indicates to me that a used car is worth what someone is prepared to pay for it and has absolutely nothing to do with how much tax was paid to the government when it was new.

You're right about ultra-desirable cars holding an inflated value - sometimes a value that exceeds the price of the new car including VAT.

But for the majority of cars (including the one in question), the resale value of the car after purchase is definitely minus VAT.  Dealers definitely sell 'nearly new' cars at massive discounts that take into account the lack of VAT.

Kinboshi

Are these "nearly new" cars sold by dealers Cars that have been registered by the dealer or cash purchases from the public?.

Cheers

Regards

M

[MPOWER]

Audi R8 has dropped £25000 in value in the last 3 months.

We were paying 95k for the right cars we are now buying at 65k to 70k

Credit crunch...... 

Show caution

Regards

M