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  1. #11
    VXRacing ahead vxrmjp's Avatar
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    You would only pay VAT on the monthly payments and deposit, rather than the 'new' cost, but the VAT on those is enough to make it uneconomical.
    As a result of tax changes on new cars, I no longer buy new. I buy used with a warranty that I ensure covers the things I want covered. The tax and VAT has then been paid for me!
    What was very interesting, recently I was comparing the screen prices of small dealers with those of main dealers for the same type of car. I was very suprised to find that the main dealer cars were actually better value and in many cases, considerably so.
    You are correct that those with all this debt and finance will have big problems at some time. If they lose their job, the car has to go, no savings and a default + no job = no more finance, so no car and a problem travelling to a new job. No job = no car, loss of house, TV, furniture etc. Ultimately, they end up on universal credit with no payments for 6 months = food banks.....and it will take them over 6 years to build their credit rating back up!
    SAVE THE VXR AND STOP BUYING SUV TOSH!

  2. #12
    VXR Nothing comes close IanJ's Avatar
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    18th February 2007
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    Quote Originally Posted by El1te View Post
    Doesn't PCP on a new car allow everyone to avoid having to pay a large amount of VAT?
    So a cash buyer would have to pay £25k whereas a PCP buyer would only have to pay £20k (plus interest) therefore making new cars very attractive on finance/PCP.

    Hence the article says 88% of new cars are on finance.

    But used cars don't manage to dodge VAT so there's less incentive to finance them through the dealer, although many people might take out a personal loan or mortgage equity withdrawal to fund it.

    Hence 'only' 30% of used cars on finance (although as said above: some might have personal loans or remortgages underpinning their purchase).

    Me?
    I generally buy cars that are a couple of years old with then intention of running them until they're 11-12 years old. I pay cash.
    Why? Because at a couple of years old they've already taken a large depreciation hit but still have a year of manufacturer warranty, and after 11-12yrs a lot of cars start to become unreliable or develop multiple minor problems.

    No as a personal buyer/leaser or whatever there is VAT payable


    see the offers here only a "business" user gets the price without the VAT added


    https://www.nationalvehiclesolutions.co.uk/


    And here's your typical BMW PCP (no VAT discount)
    https://offers.bmw.co.uk/finance-off...368.1536065044




    People seem to get their knickers in a knot understanding PCH/PCP


    https://www.moneysavingexpert.com/ca...ract-purchase/
    https://www.moneysavingexpert.com/ca...hire-purchase/
    https://www.moneysavingexpert.com/ca...e/car-leasing/


    All can be useful in the right circumstances and can suit those who are cash rich to those who aren't.
    Last edited by IanJ; 27th September 2018 at 02:39 PM.

    Astra

  3. #13
    VXRed
    Join Date
    17th March 2018
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    Quote Originally Posted by El1te View Post
    Doesn't PCP on a new car allow everyone to avoid having to pay a large amount of VAT?
    So a cash buyer would have to pay £25k whereas a PCP buyer would only have to pay £20k (plus interest) therefore making new cars very attractive on finance/PCP.

    Hence the article says 88% of new cars are on finance.

    But used cars don't manage to dodge VAT so there's less incentive to finance them through the dealer, although many people might take out a personal loan or mortgage equity withdrawal to fund it.

    Hence 'only' 30% of used cars on finance (although as said above: some might have personal loans or remortgages underpinning their purchase).

    Me?
    I generally buy cars that are a couple of years old with then intention of running them until they're 11-12 years old. I pay cash.
    Why? Because at a couple of years old they've already taken a large depreciation hit but still have a year of manufacturer warranty, and after 11-12yrs a lot of cars start to become unreliable or develop multiple minor problems.
    I have a 2006 vectra vxr so that was unreliable from the get go but still great fun and fast as a bat out of hell!

    Sent from my H8216 using Tapatalk

  4. #14
    VXR Adam"san" w20adm's Avatar
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    23rd June 2010
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    Agree with so many comments, faceslap and insta whatever

    Modern generation down to a "T"
    W20 ADM's led Lighting shop, see link below for details
    http://www.vxronline.co.uk/forum/sho...-lighting-shop

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