Didn't citroen do a 'no vat to pay' promotion.Tosh really then as clearly it would one way or another. It was just a reduced car price but it shows how much they can knock off the price and still make a profit!

However, the thing to note is that usually the "no VAT discount" is via a rebate...as the majority of people probably use finance for buying their car, this means that these people will be getting finance on the VAT-inclusive price, not the discounted price.

So Citroen/their finance company stand to make more money on the interest than if they sold at the discounted rate...and probably more than the VAT amount which they're refunding. And it gives people the feeling they've "got one over" on the tax man, which as most of us know is pretty impossible.

Rob.

My dealer (which is also a big VW dealer here in belgium) told me to buy a VW if I was planning to sell the car on "short" term (e.g. within 5 years/100000km). Resale values are WAY higher for a VW, when comparing to a skoda. Sad but true.

But luckely I'm not planning on selling my octavia soon. I'd like to get 300 000km or something like that on the display I already have 3 000, 297 000 to go.

If you want a really high price when selling your car, buy a toyota. The price here in belgium doesnt drop fast at all, during the first 5 years. These cars have 3 years or 100 000km full factory warranty + 2 years or 50 000km full dealer warranty. That means driving the first 150000km (or 93205miles) without any worries. They pay spare parts + working hours + the towing costs.

That's why you see a lot of second hand toyota's on the market here, 3-4 years old, with still 1-2 year dealer warranty, so that they still get a decent price. That new avensis with the 2.2 D4-D 177hp (euro4 compliant) looks quite good, and the basic trim level has quite a lot of options in it (auto airco, radio-cd, ... etc).

I have seen second hand cars, 1 year old, which were more practically more expensive than a new one minus special discounts (-10% during the month of the car-exposition here). So it's only interesting to buy one of those during the rest of the year.

here's a useful link for a trade-in value

http://vauxhall.co.uk/UVValuation/glassLaunch.jhtml

and here's the verdict on the Octy Classic trade in value:

Skoda Octavia Classic

1.6 Petrol 5-door Hatchback

5 Speed Manual Front Wheel Drive

Year: 2004 54

Mileage: 5,000

Part-exchange Price:

Excellent condition:

you are wrong.

vat is only paid once on an item.

I beg to differ. Direct quote from HM C&E VAT guide

8.5 Second-hand goods

For most second-hand goods, there is a special scheme which allows

you to charge tax on the difference between your buying price and

your selling price, rather than on the full selling price. Use of the

scheme is optional and is conditional on meeting the scheme rules

about record keeping.

There is a simplified version of the scheme, known as Global

Accounting, and a variation for use by auctioneers, called the

Auctioneers

here's a useful link for a trade-in value

http://vauxhall.co.uk/UVValuation/glassLaunch.jhtml

and here's the verdict on the Octy Classic trade in value:

Skoda Octavia Classic

1.6 Petrol 5-door Hatchback

5 Speed Manual Front Wheel Drive

Year: 2004 54

Mileage: 5,000

Part-exchange Price:

Excellent condition:

you are wrong.

vat is only paid once on an item.

If I buy farm machinery ' date=' If the seller is VAT reg. I can claim it back weather it is new or second/third/tenth hand , and likewise if I sell it I have to charge VAT and pay it to hm's customs and exise the same is true of Comercial Vehicles (Land Rover etc) , but [u']NOT CARS[/u] Like everbody else I pay VAT on new , can,t claim it back , and don't charge it to a garage when I sell

So let me get this right, in summary

You P/X your car to a dealer who pays VAT and he gives you

That was a nice bit of light reading,for a Sunday afternoon