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PCP and VAT?
We're thinking of replacing my wife's Audi A1 with either a Volkswagen Golf Convertible or A3 Convertible, once we have got the first MoT on the A1 in January 2016.
Normally we buy cash, but I'm being swayed by some PCP deals. But the real question is that I've been told that if you do a PCP on a used car you don't pay VAT on the PCP. Is this correct?
Normally we buy cash, but I'm being swayed by some PCP deals. But the real question is that I've been told that if you do a PCP on a used car you don't pay VAT on the PCP. Is this correct?
Asked on 17 June 2015 by GJL
Answered by
Honest John
The sweet spot of the 2014 A3 Cabrio range is the 1.4 ACT 150, which is the base version. You don't want massive power and S3 4WD for a convertible you want to cruise around in the summer with the top down. Don't go for a Golf because that is not on the latest MQB subframes.
I can't even begin to understand the VAT question. Makes no sense at all to a private buyer. On any type of lease, VAT is due on the payments. On a PCP, a 'buyer' is basically paying off a new car purchase, a proportion of which is always VAT. But once VAT has been paid off on a car it is not due again.
I can't even begin to understand the VAT question. Makes no sense at all to a private buyer. On any type of lease, VAT is due on the payments. On a PCP, a 'buyer' is basically paying off a new car purchase, a proportion of which is always VAT. But once VAT has been paid off on a car it is not due again.
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