Mclaren depreciation
Discussion
Mr Cod said:
Why after I have seen it explained 100 times is VAT still mentioned in depreciation threads. It has no importance other than determining the original list price of the car. Its 20%. If it were 80%, would the car suddenly be worth 80% less on the second hand market? No. People compare the second hand price to the list price and make a decision as to what they will pay. This is the case in Singapore where approx 80% of forecourt price is tax. Second hand prices are similarly exorbitant - prices dont revert to some sort of intrinsic, non-taxed, value of the car.
Respectfully, you are wrong. If the original / new product being sold included 20% tax, it would not be included within a used sale by a private owner. The original owner takes the hit on the VAT. Used cars being privately sold in the UK do not attract VAT. If the seller of a used car wishes to recoup the initial outlay of VAT, it’s a point of negotiation. We may be talking about the same thing, but at different points, so I apologise if I have misinterpreted your post.Agree with Cod, it’s all about customer “value”. Request and offer will make the market price.
F1s on one extreme (rare car) and let’s say 570s on the opposite (loads of stock)
You know I could have mentioned other cars sold above list from an other brand but I am trying to keep some people away from this topic.
F1s on one extreme (rare car) and let’s say 570s on the opposite (loads of stock)
You know I could have mentioned other cars sold above list from an other brand but I am trying to keep some people away from this topic.
MAC 720S said:
There’s over 100 570’s advertised for sale at the moment. What a time to be buying these fantastic cars.
Agree, buyers shouldn’t be let down by depreciation, these are amazing machines, more than boring cars sold above list.It’s the overproduction compared to others that make them lose price, but in terms of experience they’re top notch.
MAC 720S said:
Mr Cod said:
Why after I have seen it explained 100 times is VAT still mentioned in depreciation threads. It has no importance other than determining the original list price of the car. Its 20%. If it were 80%, would the car suddenly be worth 80% less on the second hand market? No. People compare the second hand price to the list price and make a decision as to what they will pay. This is the case in Singapore where approx 80% of forecourt price is tax. Second hand prices are similarly exorbitant - prices dont revert to some sort of intrinsic, non-taxed, value of the car.
Respectfully, you are wrong. If the original / new product being sold included 20% tax, it would not be included within a used sale by a private owner. The original owner takes the hit on the VAT. Used cars being privately sold in the UK do not attract VAT. If the seller of a used car wishes to recoup the initial outlay of VAT, it’s a point of negotiation. We may be talking about the same thing, but at different points, so I apologise if I have misinterpreted your post.Doesn’t make sense to me as a private buyer.
breadvan said:
MAC 720S said:
Mr Cod said:
Why after I have seen it explained 100 times is VAT still mentioned in depreciation threads. It has no importance other than determining the original list price of the car. Its 20%. If it were 80%, would the car suddenly be worth 80% less on the second hand market? No. People compare the second hand price to the list price and make a decision as to what they will pay. This is the case in Singapore where approx 80% of forecourt price is tax. Second hand prices are similarly exorbitant - prices dont revert to some sort of intrinsic, non-taxed, value of the car.
Respectfully, you are wrong. If the original / new product being sold included 20% tax, it would not be included within a used sale by a private owner. The original owner takes the hit on the VAT. Used cars being privately sold in the UK do not attract VAT. If the seller of a used car wishes to recoup the initial outlay of VAT, it’s a point of negotiation. We may be talking about the same thing, but at different points, so I apologise if I have misinterpreted your post.Doesn’t make sense to me as a private buyer.
MAC 720S said:
breadvan said:
MAC 720S said:
Mr Cod said:
Why after I have seen it explained 100 times is VAT still mentioned in depreciation threads. It has no importance other than determining the original list price of the car. Its 20%. If it were 80%, would the car suddenly be worth 80% less on the second hand market? No. People compare the second hand price to the list price and make a decision as to what they will pay. This is the case in Singapore where approx 80% of forecourt price is tax. Second hand prices are similarly exorbitant - prices dont revert to some sort of intrinsic, non-taxed, value of the car.
Respectfully, you are wrong. If the original / new product being sold included 20% tax, it would not be included within a used sale by a private owner. The original owner takes the hit on the VAT. Used cars being privately sold in the UK do not attract VAT. If the seller of a used car wishes to recoup the initial outlay of VAT, it’s a point of negotiation. We may be talking about the same thing, but at different points, so I apologise if I have misinterpreted your post.Doesn’t make sense to me as a private buyer.
MAC 720S said:
breadvan said:
MAC 720S said:
Mr Cod said:
Why after I have seen it explained 100 times is VAT still mentioned in depreciation threads. It has no importance other than determining the original list price of the car. Its 20%. If it were 80%, would the car suddenly be worth 80% less on the second hand market? No. People compare the second hand price to the list price and make a decision as to what they will pay. This is the case in Singapore where approx 80% of forecourt price is tax. Second hand prices are similarly exorbitant - prices dont revert to some sort of intrinsic, non-taxed, value of the car.
Respectfully, you are wrong. If the original / new product being sold included 20% tax, it would not be included within a used sale by a private owner. The original owner takes the hit on the VAT. Used cars being privately sold in the UK do not attract VAT. If the seller of a used car wishes to recoup the initial outlay of VAT, it’s a point of negotiation. We may be talking about the same thing, but at different points, so I apologise if I have misinterpreted your post.Doesn’t make sense to me as a private buyer.
How much do you calculate my ‘profit’ to be?
MAC 720S said:
MAC 720S said:
breadvan said:
MAC 720S said:
Mr Cod said:
Why after I have seen it explained 100 times is VAT still mentioned in depreciation threads. It has no importance other than determining the original list price of the car. Its 20%. If it were 80%, would the car suddenly be worth 80% less on the second hand market? No. People compare the second hand price to the list price and make a decision as to what they will pay. This is the case in Singapore where approx 80% of forecourt price is tax. Second hand prices are similarly exorbitant - prices dont revert to some sort of intrinsic, non-taxed, value of the car.
Respectfully, you are wrong. If the original / new product being sold included 20% tax, it would not be included within a used sale by a private owner. The original owner takes the hit on the VAT. Used cars being privately sold in the UK do not attract VAT. If the seller of a used car wishes to recoup the initial outlay of VAT, it’s a point of negotiation. We may be talking about the same thing, but at different points, so I apologise if I have misinterpreted your post.Doesn’t make sense to me as a private buyer.
Sadly I suspect however these market prices might be driven by supply and demand.
breadvan said:
MAC 720S said:
breadvan said:
MAC 720S said:
Mr Cod said:
Why after I have seen it explained 100 times is VAT still mentioned in depreciation threads. It has no importance other than determining the original list price of the car. Its 20%. If it were 80%, would the car suddenly be worth 80% less on the second hand market? No. People compare the second hand price to the list price and make a decision as to what they will pay. This is the case in Singapore where approx 80% of forecourt price is tax. Second hand prices are similarly exorbitant - prices dont revert to some sort of intrinsic, non-taxed, value of the car.
Respectfully, you are wrong. If the original / new product being sold included 20% tax, it would not be included within a used sale by a private owner. The original owner takes the hit on the VAT. Used cars being privately sold in the UK do not attract VAT. If the seller of a used car wishes to recoup the initial outlay of VAT, it’s a point of negotiation. We may be talking about the same thing, but at different points, so I apologise if I have misinterpreted your post.Doesn’t make sense to me as a private buyer.
How much do you calculate my ‘profit’ to be?
ETA - but you and Mr Cod are of course correct. VAT has absolutely nothing to do with the value of a used car. It is simple demand and supply that sets the price. Some will lose 30% driving off the forecourt, others may increase in value.
Edited by Jules360 on Friday 6th September 06:39
Mr Cod said:
Why after I have seen it explained 100 times is VAT still mentioned in depreciation threads. It has no importance other than determining the original list price of the car. Its 20%. If it were 80%, would the car suddenly be worth 80% less on the second hand market? No. People compare the second hand price to the list price and make a decision as to what they will pay. This is the case in Singapore where approx 80% of forecourt price is tax. Second hand prices are similarly exorbitant - prices dont revert to some sort of intrinsic, non-taxed, value of the car.
Good point. I think the supply in Singapore may be less so the values are held. It would seem in the example of £100k lost though that it could play a factor? On cars that seem heavy on depreciation such as my AMG e class and Range Rover 9seen it twice) they do drop by more than the vat in first yr....maybe coincidence?
You're not helping!Mr Cod said:
Why after I have seen it explained 100 times is VAT still mentioned in depreciation threads. It has no importance other than determining the original list price of the car. Its 20%. If it were 80%, would the car suddenly be worth 80% less on the second hand market? No. People compare the second hand price to the list price and make a decision as to what they will pay. This is the case in Singapore where approx 80% of forecourt price is tax. Second hand prices are similarly exorbitant - prices dont revert to some sort of intrinsic, non-taxed, value of the car.
Agree with this entirely.Not Ideal said:
Mr Cod said:
Why after I have seen it explained 100 times is VAT still mentioned in depreciation threads. It has no importance other than determining the original list price of the car. Its 20%. If it were 80%, would the car suddenly be worth 80% less on the second hand market? No. People compare the second hand price to the list price and make a decision as to what they will pay. This is the case in Singapore where approx 80% of forecourt price is tax. Second hand prices are similarly exorbitant - prices dont revert to some sort of intrinsic, non-taxed, value of the car.
Agree with this entirely.Not Ideal said:
Mr Cod said:
Why after I have seen it explained 100 times is VAT still mentioned in depreciation threads. It has no importance other than determining the original list price of the car. Its 20%. If it were 80%, would the car suddenly be worth 80% less on the second hand market? No. People compare the second hand price to the list price and make a decision as to what they will pay. This is the case in Singapore where approx 80% of forecourt price is tax. Second hand prices are similarly exorbitant - prices dont revert to some sort of intrinsic, non-taxed, value of the car.
Agree with this entirely.MAC 720S said:
Mr Cod said:
Why after I have seen it explained 100 times is VAT still mentioned in depreciation threads. It has no importance other than determining the original list price of the car. Its 20%. If it were 80%, would the car suddenly be worth 80% less on the second hand market? No. People compare the second hand price to the list price and make a decision as to what they will pay. This is the case in Singapore where approx 80% of forecourt price is tax. Second hand prices are similarly exorbitant - prices dont revert to some sort of intrinsic, non-taxed, value of the car.
Respectfully, you are wrong. If the original / new product being sold included 20% tax, it would not be included within a used sale by a private owner. The original owner takes the hit on the VAT. Used cars being privately sold in the UK do not attract VAT. If the seller of a used car wishes to recoup the initial outlay of VAT, it’s a point of negotiation. We may be talking about the same thing, but at different points, so I apologise if I have misinterpreted your post.
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