Demo models

[sel1]

If a dealership were to sell me a demo vehicle (which has been registered meaning although it has only been driven by Renault, it is classed as having 1 previous owner), would it be subject to VAT?

I've been told that 2nd hand cars do not have VAT added onto the price, but does this count with ex-demo's?

(The ex demo in question has done 9000 miles and is 3 months old).

Any help appreciated.

Thanks.

 

[davebem]

Im not sure, my first car was pre registered/ex demo, Im sure had to pay vat on that. How much are they knocking off the list price?

 

[sel1]

The car is a megane sport. They currently have 0% finance on the one i want if i bought it new, but this has 13%, meaning the cost of the demo one which has done the 9000 miles is exactly the same cost as a new one.

I want the ex demo one as i can have it straight away, but i don't really know how much i can get away with asking them to bring the price down.

 

[Iain C]

dont be fooled by 0%. They just charge more for the car.
I think you will be the 2nd owner

 

[sel1]

But being the 2nd owner...usually a 2nd hand car would have no VAT apparently, but i don't know if it's the same if it only 2nd hand by being an ex demo.

To buy new, the car would be 19000+ plus VAT and 0% APR.

To buy as a 3 month old demo with 9000 miles on the clock, the car would be 15000, plus VAT, plus 13% APR.

The total for both comes to just over 20000.

Obviously i don't want to pay the same for a demo, as i would new, just so i get it now, rather than in a couple of months. I don't know what i can get away with asking for to get the price lower than a new one...i've never had to barter on price before so i don't know much about these sorts of things

 

[mat-nos]

all depend on what you can afford per month ask them to work it out that way then barter with the price to suit you budget!!

 

[Tim172]

Seems an awful lot of money!

 

[Leeshez]

If thats the case. Why not wait for a new one with 0 miles?

 

[trailerparktrev]

A couple of weeks ago www.buymynewcar.co.uk were selling R26 Meganes with options for £15,995 You'd be a fool to pay over 20k for a Megane. You'll loose 10 grand in 2 years in depreciation.

 

[-Leigh-]

My Punto was a demo car, and I didn't pay VAT on it. I was the second owner yes, but on the logbook it just says previous owner was the dealership. Saved £3000 over new price, and it had only done a few thousand miles by the secretary driving it as her company car, and a few local chavs taking it out for test drives ragging the fook out of it.

 

[KI8RKW]

I'd be put off by a demo with that many miles on the clock; You dont know what life its had in such a short time. Buy it new, Try to knock off a few £ of the price; And play for some options.

 

[-Leigh-]

Mmm, yeah 9k in 3 months is quite high, I do 10k in 12 months. My Punto had done 1.5k in 3 months, just to compare lol.

 

[AliasOmega]

You should only pay the price stated in the car window, or ask the salesman for the price on the car, then normally knock £2500 off that price negotiation.

I rarely pay full price for anything, my best time to get a deal is buying a car, or fairground rides.

Remember, your walking into the garage to buy 'there' car, therefore you can leave at any time.

Take a test drive in the car, mention that you have seen 'others' in car garages down the road, then after the test drive, look round it. Pick out all 5the work you want done to the car, ie wheels replaced, chips, marks etc removed. Then get to work on the price, if the car is up for £18,000, tell them you want to pay £14,000 and go from there, then when you feel the price is not coming down enough, be prepared to leave, tell him your best price and write your number down on a piece of paper, give it him and say 'ring me if the price changes' then walk away, i can assure you that by the time you get too your car, the price would of dropped a bit more and you be ok for a deal.

People make the mistake of sitting and excepting the price. I like to hammer them down, then walk away for a better deal. They think your going to go too the other car garage, if the car has been sat on the forecourt for a few weeks.

Thats how i got my car from £13,500 down too £10,600.

 

[sel1]

Thanks guys. You've been a great help.

 

[gazcaddy]

You should only pay the price stated in the car window, or ask the salesman for the price on the car, then normally knock £2500 off that price negotiation.

I rarely pay full price for anything, my best time to get a deal is buying a car, or fairground rides.

Remember, your walking into the garage to buy 'there' car, therefore you can leave at any time.

Take a test drive in the car, mention that you have seen 'others' in car garages down the road, then after the test drive, look round it. Pick out all 5the work you want done to the car, ie wheels replaced, chips, marks etc removed. Then get to work on the price, if the car is up for £18,000, tell them you want to pay £14,000 and go from there, then when you feel the price is not coming down enough, be prepared to leave, tell him your best price and write your number down on a piece of paper, give it him and say 'ring me if the price changes' then walk away, i can assure you that by the time you get too your car, the price would of dropped a bit more and you be ok for a deal.

People make the mistake of sitting and excepting the price. I like to hammer them down, then walk away for a better deal. They think your going to go too the other car garage, if the car has been sat on the forecourt for a few weeks.

Thats how i got my car from £13,500 down too £10,600.

From my experience of Renault dealers they would probably roll over laughing if you said you wanted a car for 4k under asking price! Not saying it cant be done though it depends how desperate they are to sell

 

[swaddle]

hi all,
I bough my 172 cup as an ex demo 4 years ago and i'm the second owner but I paid no VAT whatsoever on this car. You don't pay vat on second hand cars which is what the megane is, the garage owned it first that's why you will be the second owner of the car! my clio was only 3 months old but it had only done 3000 miles, it seems pretty high mileage too for the megane, 9000 in 3 months?

 

[PrincessJessica]

2nd hand car = no vat

 

[KI8RKW]

Haggle them to hell.
We've just picked up our new car today. We got the part ex up from 7500 to 8500, Factory fitted parking sensors, Rear bumper replaced, years tax and a full tank of fuel (at the last minute) + 500 quid off forecourt price.
Bit of haggling and the whole "well, We'll see what X garage can do". Then he came back with the "Look, You stay with me; I'll beat them & Take care of you".

All in all, was a nice guy.

 

[Chris Wilson]

I have never heard of VAT on a used car - if the car is a demo it's already registered so it will have 1 owner on the log book... i think someones taking you for a ride in a very expensive car.

Tell them there is no vat on used cars or to shove it and go elsewhere.

 

[Dan@SJM]

I'd love an ex-demo car, can be certain its run in properly.

 

[Brett]

yuo can't be taxed on the same thing twice. Except things like income tax etc but you can't be taxed on a product twice.

 

[JON13S]

sounds like theyre trying to get as much money back on the demo car as possible for a salesmans nice juicy payday bonus! hit them with the fact that any second hand item in the uk is not subject to vat! id also show them the finance thing youve calculated! walk in with some bo***cks and tell them what you want! dont take crap because at the end of the day you can just walk away and they wont be getting anything off you! (they know this but salesmen are trained in blagging you)
theyre loss!

the balls in your court offer them a quid they can only say no.with the dilemma you have id walk but if you really want one of these 2 without an argument id go new

but i say bring on the fight as its money in your pocket

always found getting a bank loan and wondering in with cash a good move and hsbc did mine for 3.8%

up to you

j

 

[edde]

But being the 2nd owner...usually a 2nd hand car would have no VAT apparently, but i don't know if it's the same if it only 2nd hand by being an ex demo.

The first owners pays the VAT unless its registered as being a bsiness car as such n which case when they sell it on VAT is due.

 

[martin.lang]

Any car owned by a VAT registered business first will be subject to VAT as they claimed back the VAT in the first instance, so a demo car will be VAT'd

 

[DynamoDave]

There is VAT on second hand cars but it's not calculated as a straight forward % on sale price as usual (ie. £17.50 on £100)

Vat will be due on the margin made by the dealer. For example...If a dealer bought in a car at £10k and sold it for 13K, VAT will be due of £446.80.

This is calculated as 7/47 of the gross margin (ie. £3k) which means the net sales figure is actually £12,553.20(£13k less £446.80 VAT) and the gross sales figure is the £13k (ie. what you pay)

Hope this helps

David

 

[martin.lang]

But on a demo you pay VAT at the purchase price

 

[cat171]

Hmmm, sel1 - Last Activity: 30-06-2007 20:47

He's not been on since then, so I doubt if he's going to tell us if he got it of not.