Need advice on buying a used car in the UK

Hi All,

When buying a used car here, do you pay VAT on top of the purchase price, and if so, is that only when purchasing from a dealership (instead of an individual)? Finally, if VAT is charged on used cars, do dealers generally advertise the price WITH the VAT already included?

Many Thanks,

The Sun King

Hi SunKing,

My husband has informed me that when you buy anything privately, you don't have to pay VAT. VAT is charged by businesses who make more that £47,000 a year. So, yes you would pay it if you bought from a dealer, and no if from an individual.

On a side note, they do have car tax here, kind of like the tax you pay each year back home when you renew your car tag. You can either pay it once or twice a year. If you do buy privately, it's worth it to check how much time is left before the tax is due again for the car and to be sure it's reflected in the price if it's up soon.

I hope that helps.

Jenninberks

When buying from a dealer,the price you see is the price you pay,then again haggle,you can usually save quite a bit on the sticker price.

Dave

Most important when you want to buy a car second hand is to do your homework.
Some makes and models have huge depreciation from new for various reasons - popularity, image, perceived build quality etc. These can make good second hand buys since you can get a lot of car for your money.

Get hold of a car mag that lists the typical prices of used cars and gives you history and a milage calculator so you can calculate the price adjustment for the car milage.

And haggle.

Hi Again,

Thanks for the advice. I'm actually already quite familiar with the general techniques of buying a car, but have just never bought one in the UK. One further question: You brought up a good point about book value. Back in the U.S. I used to use Kelly's Blue Book Value or NADA Book value as a reference.

Is there an easily accessed British equivalent of that?

Many Thanks,

The Sun King

The "What Car" mag lists used car prices.

http://www.glass.co.uk/uk/en/
Might help you too.