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VAT’s it all about?
I'm being charged VAT on the purchase of a used car. Is this correct? Nissan will be the first registered owner. The new car
warranty etc. all starts in September 2008. What is the benefit to Nissan of selling a car as pre-registered? There seems to be something significant about the 3 months gap between being
registered and then sold on to me.
warranty etc. all starts in September 2008. What is the benefit to Nissan of selling a car as pre-registered? There seems to be something significant about the 3 months gap between being
registered and then sold on to me.
Asked on 7 February 2009 by
Answered by
Honest John
It will have been a ‘VAT qualifying’ car on which VAT is paid and
reclaimed until the car goes to a non VAT qualifying owner. This actually makes no difference to you, just the way the car is invoiced. Had you been a garage or a leasing or hiring operation, you too could have claimed the VAT back, then charged and repaid VAT when you sold it. The dealer got it on a bulk registration fleet deal, the terms of which were that it was registered to a 'fleet' for four months. That's how he obtained the discount that he passed on to you.
reclaimed until the car goes to a non VAT qualifying owner. This actually makes no difference to you, just the way the car is invoiced. Had you been a garage or a leasing or hiring operation, you too could have claimed the VAT back, then charged and repaid VAT when you sold it. The dealer got it on a bulk registration fleet deal, the terms of which were that it was registered to a 'fleet' for four months. That's how he obtained the discount that he passed on to you.
Our honest used car pricing is a little bit different to all the others. You can get to our values through make or model - you don’t have to follow a prescribed route. Plus, it’s live, which means we can react to changes in the market quicker than any printed price guide.
Honest Used Car Prices
Dear Honest John,
Please help me choose my next car. I would like it to have:
Please help me choose my next car. I would like it to have:
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