[Lucky]

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.....

[girlracer]

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.....

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.

[russ1]

Other threads
http://www.apparelyz...p?showtopic=360
http://www.apparelyzed.com/forums/index.ph...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.com/depreciation-index....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.