VAT on used cars?

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Wed 16 Sep 2009 20:58
VAT on used cars? - SteelSpark
Hi,
There is a previous question about VAT on a new car. I am currently buying a used car (a 6 month old Mondeo) and this has made be wonder about VAT on used cars (I did a quick Google and found people talking about VAT on used cars on other forums).

I have agreed a price for the car, when I go to pay tomorrow am I going to find VAT slapped on top? (please let the answer be no!)

Thanks in advance for any help.
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Wed 16 Sep 2009 21:07
VAT on used cars? - Bill Payer
No.
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Wed 16 Sep 2009 21:09
VAT on used cars? - alfatrike
vat has to paid if you are the first private buyer. if the previous owner was a vat registered person or business you will have to pay the vat.

hope this helps and makes sense.

alf
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Wed 16 Sep 2009 21:18
VAT on used cars? - Bill Payer
VAT is extremely complicated but I've never heard of anyone being quoted an ex-VAT price for a car.
It might be itemised out on the invoice but the total will be as agreed.
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Wed 16 Sep 2009 21:35
VAT on used cars? - SteelSpark
VAT is extremely complicated but I've never heard of anyone being quoted an ex-VAT price
for a car.
It might be itemised out on the invoice but the total will be as agreed.


Phew, that would really have spoilt my day :)

It is an ex-demo car, so I suppose I will be the first private owner (as Alf mentions), but as long as the agreed price includes VAT and it is only a line item on the invoice I guess it doesn't matter.

Thanks for all of your reponses, and thanks for responding quickly, as I was suddenly quite worried. I can get back to enjoying the match now!

Thanks again.
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Wed 16 Sep 2009 21:30
VAT on used cars? - Falkirk Bairn
VAT on purchase of cars is not normally reclaimable by a company.

The exceptions are where the car is an essential part of the service of the company:-
eg Driving School car but not the MD's car of the Driving School as it is not used for tuition.
Garage can claim back the VAT on Demo Cars - hence the multi-million £££s given to Garages a few years back - they recovered VAT for the 10-15 years.

Car Leasing Cos can reclaim VAT - Companies can reclaim the VAT on a leased car rentals therefore Car Leasing appeals to many companies.
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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

A guide to how much VED you will need to pay on your car.

Road Tax Bands and Rates