Buying vat and vrt exempt

gumgum1

hi hope someone can help be here as I said my mother in law is buying a new car she is buying vrt and vat exempt the salesman was throwing loads of figures at her which were all going over her head can some one tell me if the car is costing 26400 what price should she be agreeing before she signs her hire purchase form

colm_mcm

Is there a trade in involved?
Do you know how much the vrt should have been?
Are there any adaptions that need to be fitted? Do you know what these cost?

Did she not get a quotation?

gumgum1

colm_mcm wrote: »

Is there a trade in involved?
Do you know how much the vrt should have been?
Are there any adaptions that need to be fitted? Do you know what these cost?

Did she not get a quotation?

he keep changing the price he said he is giving 3000 for a trade in and this is where the confusion is when we try to work out what price she should be paying it works out that he is giving that's he is only giving seven hundred and fifty and she need the price she is paying because she has to the car adapted and it has to be ten percent of the price she is paying this Will be done with a separate garage thanks for your help

colm_mcm

Ok, to understand how this working, you first need to understand how a regular car sale works.

Here's how it normally works:

I have a 99 micra (not really) with no nct, I'm buying a brand new micra which has a list price of €17000

My micra won't be put on the forecourt as its too old. You see them on donedeal for anything between €600 and €1500.

Dealer says he'll give me €1500 for it. I pay €15500 and get on with my life.

Now what happened is this:

Dealer sells my car at auction for €500. Now he's hardly going to write it into stock and lose €1000 plus VAT. He writes it in at €500 and invoices out the 131 micra at €16,000

There was roughly €2000 margin in the new car anyway, so he's made €1000 profit.

colm_mcm

Now in the case of the car with apaptions being done, what's usually done is 2 seperate transactions (garage may not be doing this, but this usually is the way it happens), as the vat is claimed on the money being spent, so its beneficial to sell the new car out and buy the trade in seperately.
I this case its impossible to hide behind discounts and margins.

Its bloody complicated, and to be honest the garage should have given you a proper quotation that itemised the vrt, vat and so on.

The less they give you on paper for the trade in, then the less they sell the new car out for, and the less vat your MIL can claim.

So to answer your question. Nobody knows.
You should have gotten a quotation itemising this before the sale was agreed as it all depends on how much the salesman decides to write the trade in at. If you don't have anything detailing how much vat you can claim, then there's not a whole lot you can do.