Just looking through the Skoda approved used website and seeing some real differences in the asking prices of what are essentially the same car at different dealerships.

 

My local dealer has had an ex-demo petrol VRS estate on there at £22k for the last couple of months, also an Elegance that I've seen go from £22k at the back end of 2013, down to £19.5k, then to £19k, it's now at a shade over £18k but still a bit more than some others...

 

The VRS seems overpriced when there are other dealers with similar age/spec for sub £20k, there seems to be a bit of a north/south divide on prices too....

 

Am I just stating the obvious here or am I missing something??  If I went into the dealer and said the VRS is overpriced compared to one at the other end of the country that's cheaper I assume they'd most likely tell me to jump on the next train and buy that one then.... lol.  Are they just pushing their luck that someone would walk in and pay that, or is it a bit of ignorance on their part that they've not reviewed the price when it didn't sell?

 

Steve.

If you want the car I'd suggest you do just that, go and haggle armed with evidence. If that enemy work, use the phone and then jump on a train.  Why pay over the top?

 

I would expect it to sell quickly though (the vrs) as the wait is so long.  A 9 month old car with a thousand miles on it from a mein dealer now.... Or wait 6 + months for a new one..... Plenty will pay for the demo car.

Dealers are wanting top dollar for demo's. I saw one somewhere for stupid money, granted it had a few toys on. At the time the 0% was a no brainer.

Is there any reason (other than demand & supply) why ex-demos should not have at least the 20% VAT knocked off of list price? As far as I am aware they won't pay the VAT, so profit margins will be much higher than selling a new car. 

Nice idea but I have asked this question when buying a regd no miles motor cycle I was told they would never sell new if they removed all the vat on used so it's a proportion that's kept on the used vehicle, it's completely wrong all the vat+a bit should be knocked off?It's just not worth buying a nearly new as the difference in price is negligible.

Its not quite as simply as that, or nobody would buy new only demo's.  The rule is depreciation per month off the list price when new some dealers will try to cost in the optional extras but, ask for a PCP GFV and you won't see any extra factored in.  You've also gotta remember, these are ASKING prices its not not like houses and you can go look up the land registry and find out what it actually sold for.  Offer to pay only what you think its worth, with other ads if possible to back up your offer and if you know even tell them how long its been sitting around with them, this one is double edged though, they're writting the depreciation off their VAT bill so, it may not be the best hangle point.

 

Regards

T

Yes but should it not be depreciation per month after the vat has been removed as far as I know there is no vat on used anything, or is there?in that case I should be charging vat on anything used I sell. It just seems to me that the motor trade have come up with a scheme tonget around knocking vat off used.

As far as I'm aware, they don't have to pay vat when they buy the car from skoda, but they have to charge vat when they sell it, so the forecourt price is inclusive of vat.

Eg a car that is normally £25k including vat, they buy for £20k ex vat. If they sell for £20k, they have to pay 20% of that sale price to HMRC, so £4k.

If it were that easy to get around vat, every car would be a dealer demo.....

It's also supply and demand.

 

We had our first Yeti for 18 months and when we traded it in for a new one got more than the new price without the VAT.

 

You can't claim back the VAT on cars, so it's irrelevent.  The price is the price.

There is no VAT charged for ANY used goods. UK VAT is payed only on new items. Businesses can avoid paying VAT (or claim it back) for vehicles, which is why company car drivers take a personal hit from the Inland Revdnue. Dealers most probably have much more margin to play with on pre-reg cars than they do on new, which is why many Ford, Renault, Nissan Dealers can offer massive discounts on the less popular pre-reg stuff.

There is no VAT charged for ANY used goods. UK VAT is payed only on new items. Businesses can avoid paying VAT (or claim it back) for vehicles, which is why company car drivers take a personal hit from the Inland Revdnue. Dealers most probably have much more margin to play with on pre-reg cars than they do on new, which is why many Ford, Renault, Nissan Dealers can offer massive discounts on the less popular pre-reg stuff.

From HRMC web-site:

 

Cars and motoring expenses: reclaiming VAT

When a business buys a car it generally can't reclaim the VAT. There are some exceptions - for example, when the car is used mainly as one of the following:

• a taxi
• for driving instruction
• for self-drive hire

If you lease a car for business purposes you'll normally be able to reclaim 50 per cent of the VAT on the payments. But you can reclaim 100 per cent of the VAT if the car is used as one of the following:

• exclusively for a business purpose
• a taxi, for driving instruction or self-drive hire

 

When a dealer sells a used car it pays VAT on the profit.

There is no VAT charged for ANY used goods. UK VAT is payed only on new items. Businesses can avoid paying VAT (or claim it back) for vehicles, which is why company car drivers take a personal hit from the Inland Revdnue. Dealers most probably have much more margin to play with on pre-reg cars than they do on new, which is why many Ford, Renault, Nissan Dealers can offer massive discounts on the less popular pre-reg stuff.

 

That's not entirely true. VAT has to be paid at some point, if it wasn't paid at first purchase, or was reclaimed after purchase.

 

http://www.honestjohn.co.uk/askhj/answer/42946/if-i-buy-an-ex-demo-lexus-is-vat-still-payable-

 

When a dealer sells a used car it pays VAT on the profit.

 

Ah, but if the car was purchased new, and VAT reclaimed, then VAT has to be paid on the full (ex VAT) sale price. It's not treated as a used car in the same way that a trade-in car is treated.