Good service and no greed

[WhiteHart]

Just seen my old NX350 for sale on my dealers site and it’s only £2750 more than what they paid me. It had 7 years wear and needed a service so I think I got a very good price and very good service. 

[Scotlex]

Sounds quite fair.

Quite annoying when dealers want to make £5,000 to £10,000 on your trade in (plus what they make on the new car!)

[imgo]

Just a thought:-

If a dealer/trader 'buys' a car from you (or trade in?) for £10,000, they pay you £10,000 and £0 VAT, as you can not charge them VAT.

If they then sell the car for £12,000, they are actually selling it for £10,000 plus 20% VAT of £2,000.

The £2,000 VAT collected goes to the government, and the dealer ends up with not making a penny profit.

They are a business and are in this to make money at the end of the day.

I am not in the car trade, so I would appreciate any comments if I have got this wrong.

[WhiteHart]

37 minutes ago, Scotlex said:

Sounds quite fair.

Quite annoying when dealers want to make £5,000 to £10,000 on your trade in (plus what they make on the new car!)

I think the market at my dealership has been flooded, they have 20 NX350s "coming soon" and 1 or 2 already with pictures. The salesman did say they had a lot of new cars come in. Luckly for me my NX450 price was the price I agreed to a year ago. Now on the Lexus site it states:

"Due to production lead times, any new orders will be built in accordance to the next available model year, meaning specification and pricing may vary. You will be notified by your Centre when final pricing and specifications are published to finalise your order. Until then, your order will be considered a pre-order that you may cancel with a full refund."

[WhiteHart]

7 minutes ago, imgo said:

Just a thought:-

If a dealer/trader 'buys' a car from you (or trade in?) for £10,000, they pay you £10,000 and £0 VAT, as you can not charge them VAT.

If they then sell the car for £12,000, they are actually selling it for £10,000 plus 20% VAT of £2,000.

The £2,000 VAT collected goes to the government, and the dealer ends up with not making a penny profit.

They are a business and are in this to make money at the end of the day.

I am not in the car trade, so I would appreciate any comments if I have got this wrong.

The VAT is on the difference between the price the dealer pay for a second-hand vehicle and the price they sell it for, instead of the full selling price of each vehicle. So I think they are making money but very little. The government would only get £400 based on your £10000 and selling price of £12000.

[imgo]

The difference between the dealer tax paid and tax collected would be £2,000 not £400.

As a company you pay the difference between the two.

[WhiteHart]

If you are buying a second-hand car from a dealership, then the car dealer will need to pay VAT on any profit made. This is known as the second-hand VAT margin scheme. This came from Cargurus.  Sorry we are barking up the same tree , all it means is no profit or a small one. 

[imgo]

Kevin, I stand corrected by you, I did not know about the VAT scheme for car traders for 2nd hand cars. I have been in business (engineering) for 25 years so only knew about the standard VAT system.

[WhiteHart]

28 minutes ago, imgo said:

Kevin, I stand corrected by you, I did not know about the VAT scheme for car traders for 2nd hand cars. I have been in business (engineering) for 25 years so only knew about the standard VAT system.

I was self employed and had to deal with VAT but it was straightforward unlike the corporate world. Which seems to do things differently from us mortals. 

[Al D-Much]

15 hours ago, WhiteHart said:

Just seen my old NX350 for sale on my dealers site and it’s only £2750 more than what they paid me. It had 7 years wear and needed a service so I think I got a very good price and very good service. 

Didn't know the NX350 came out in 2016.😂

[WhiteHart]

1 hour ago, Al D-Much said:

Didn't know the NX350 came out in 2016.😂

Sorry, wishing an upgrade with hindsight.It was a  NX300. 🫣🫣