I have just phones a dealer to ask what sort of price they would offer me for my car.

They came up with a ball park of around £41k. When I pointed out that all the equivalent cars (same age , spec and mileage) seemed to be on sale for between £47K - £48K ("cos there is a long waiting list ya know" ) and that was a large markup on their behalf, he acknowledge this but said they need to incorporate VAT as they will have to pay this again when they sell it.

I said that the VAT has already been paid on the new sale and that when they normally offer you a paltry price on a second hand car one of their main lines is that the VAT has to come off... etc.

Seems like they get it both ways.....

Is there anyone on the inside that can know if I am being fed a line here and clear this up for me as it seems a bit, well, dodgy? If it is above board is this a good price for such a car, or should I try to sell privately?
Don't get me wrong I do expect to have lost some money on a one year old car but when they are selling equivalents at such a higher price, know what I mean.... ?
Car is Dec '09 Stornaway Grey, Ivory leather with contrast stitching, extended leather pack, Anigre Gloss, Privacy Glass, Adaptive Cruise Control, Steering Wheel Paddle Shift, Adaptive Bi-xenons, Tow Pack, Side Steps, just had it's first service and is on 12,300 miles.
It appears a good spec as far as I can make out on tinterweb but that seems to make no difference to the price offer either....

Definately a line as they either claim the VAT back and put it back on the new 2nd hand price or dont claim it back but then pay the VAT on the profit between what they bought it for and what they sold it for (margin).
Either way they don't pay the main VAT twice.
I think margins are up at the moment from what they were before Christmas as the volumes are down and they need the same turnover/profit to pay their overheads hence the price hike of about £2K/car on my figures.
I'm going to look at an 09 tomorrow but it's a V8 and they are asking £41,800,just hope they've got a bit of room for manoeuvre  MY2011 HSE Santorini/Ivory/Piano Black/Privacy Glass/TV .Sadly gone.
Audi A5 Sportback Black Edition 3.0 tdi quattro S Line

I have sold private through ebay with some success and other members seem to have had success selling on here and pistonheads - might be worth a try  Wanted a Series 2 LR since childhood but previously owned MY16 Disco Sport HSE TD4 Auto, MY13 RR Sport Black Edition TDV6 Auto, MY10 RR Sport HSE TDV6 Auto, 2007 Freelander 1 Freestyle TD4 Soft Top, 2009 Freelander 2 GS TD4 Auto, 2007 Freelander 2 GS TD4, 2004 Disco 2 Metropolis Auto, 2002 Disco 2 GS, 2000 Freelander 1 SE TD4 SW

Still hoping for a S2 one day!

Found this for you where Gary explained it in simple terms for me:

http://www.fullfatrr.com/forum/topic4218.html MY2011 HSE Santorini/Ivory/Piano Black/Privacy Glass/TV .Sadly gone.
Audi A5 Sportback Black Edition 3.0 tdi quattro S Line

20% of the profit margin gets taxed. Which dealer gave you that price?

I would pay more ...

Where abouts in North Yorkshire are you?

£41k sounds a tad mean but not a million miles away.

Yes, 20% VAT payable on their margin.

James

100% of the margin gets taxed at 20% so if they buy off you at £41K and sell for £47K they would pay £1200 of that just in VAT I think.
So by the time they have negotiated a discount and prepped the car they could be left with only about £2.5K nett margin.
EDIT:Sorry crossed over with James. MY2011 HSE Santorini/Ivory/Piano Black/Privacy Glass/TV .Sadly gone.
Audi A5 Sportback Black Edition 3.0 tdi quattro S Line

Thanks to responses.

I now understand the VAT situation. Frightening how much the government must make out of tax on one car.

Initial new car sales tax plus VAT on perhaps two trade sales, on servicing and parts, on fuel on insurance tax, on road tax. And we get roads with holes and cones, ridiculous car park charges and when you complain
When you complain they always roll out the line about schools and hospitals suffering if they cut any of these taxes.
Therefore it seems to me that anyone living in a city with good public transport who has little need, if any for a car, does not pay their fair share towards schools and hospitals.

Rant over, don't know where that one came from

Anyway thanks again to all.

Better than sitting on a bus or a train though eh Simon
I don't have any option where I live,trains run about 3 times a day and the bus to anywhere about the same and takes over an hour to do 8 miles !!
Kids can't afford the insurance for their own cars so Dad's Taxi is about the only form of transport especially at night. MY2011 HSE Santorini/Ivory/Piano Black/Privacy Glass/TV .Sadly gone.
Audi A5 Sportback Black Edition 3.0 tdi quattro S Line