A mate of mine (T-10 complete I think) just sold his house and with some of the cash he got back, he bought a brand new BMW X3. It was £36,000 ish. He says, as it has hand controls he didn't pay the V.A.T. This means that when he comes to sell the car about 8 months after puschase, even with depprieciation etc, he will still make a grand or two plus had the pleasure to drive a lovely car for a while.
Anyone done or do this? Thinking of it? Or tell me a little more about it?
Cheers.....
0
Don't Pay The Tax...........
Started by
Lucky
, Jan 13 2007 02:49 PM
2 replies to this topic
Top#2
girlracer
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Posted 13 January 2007 - 02:57 PM
Lucky, on Jan 13 2007, 02:49 PM, said:
A mate of mine (T-10 complete I think) just sold his house and with some of the cash he got back, he bought a brand new BMW X3. It was £36,000 ish. He says, as it has hand controls he didn't pay the V.A.T. This means that when he comes to sell the car about 8 months after puschase, even with depprieciation etc, he will still make a grand or two plus had the pleasure to drive a lovely car for a while.
Anyone done or do this? Thinking of it? Or tell me a little more about it?
Cheers.....
Anyone done or do this? Thinking of it? Or tell me a little more about it?
Cheers.....
Here in Italy the tax we (disabled) pay when purchasing a new car is reduced to 4%... but there are engine limits. You can have upto a 2.0 litre petrol engine or 2.8 litre diesel engine, bigger than those and you have to pay normal tax.
The greatest victory is that which I have yet to achieve! - Enzo Ferrari
#3
russ1
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Posted 13 January 2007 - 10:51 PM
Other threads
http://www.apparelyz...p?showtopic=360
http://www.apparelyz...p;hl=vat relief
I'm just going through the process of buying my second car VAT free.
It's certainly possible to make a profit on buying cars VAT free and selling them on but you need to choose the car very carefully and unfortunately for your mate he didn't.
Saving on a £36k car is about 5.5k less the £500 cost of conversion and removal of conversion leaves £5k. Depreciation on a 36k X3 is 10k in the first year or 7-8k in forst 8 months (http://www.whatcar.c.......ED3=0&ED4=0)- . He'll be 2 or 3 k out of pocket after 8 months.
To make money you have to choose a very low depreciating car or one in high demand and low supply that you can sell at a premium.
However as a way of reducing motoring costs it's a great idea.
http://www.apparelyz...p?showtopic=360
http://www.apparelyz...p;hl=vat relief
I'm just going through the process of buying my second car VAT free.
It's certainly possible to make a profit on buying cars VAT free and selling them on but you need to choose the car very carefully and unfortunately for your mate he didn't.
Saving on a £36k car is about 5.5k less the £500 cost of conversion and removal of conversion leaves £5k. Depreciation on a 36k X3 is 10k in the first year or 7-8k in forst 8 months (http://www.whatcar.c.......ED3=0&ED4=0)- . He'll be 2 or 3 k out of pocket after 8 months.
To make money you have to choose a very low depreciating car or one in high demand and low supply that you can sell at a premium.
However as a way of reducing motoring costs it's a great idea.
Russ - T2complete
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