This doesn't work as you think. ‘VAT qualifying’ is quite a difficult system to explain, but it means that where cars are sold to leasing companies or to rental fleets or solely for business purposes (such as a dealer demonstrator or a car to be re-sold), the input VAT can be reclaimed from HMRC. When the car is re-sold, VAT has to be charged at 20 per cent and only a VAT qualifying buyer, such as a dealer, can reclaim that VAT. If the dealer has written the car down to £28,000, then the price he would charge you would be £28,000 plus £5600 VAT, total £33,600. There is no way a private buyer ever escapes the VAT percentage of the price of a car for the whole life of the car.