I8 values in free fall....Why?

I8 values in free fall....Why?

Author
Discussion

kryten22uk

2,344 posts

230 months

Friday 7th April 2017
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Heres Johnny said:
MrOrange said:
True. But that is small beans compared to the possible £44k back from the tax man by writing the vehicle off in year one.
And when you come to sell it, you pay most of it back.
Exactly. There's so many misrepresented FYA references on here.

foxsasha

1,416 posts

134 months

Saturday 8th April 2017
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Where is the £44k figure in tax savings from?

AW10

4,421 posts

248 months

Saturday 8th April 2017
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Just a guess but if the car (with options) sells for £110K there's VAT bill of £18.3K included so that VAT can be claimed back. As can corporation tax on the ex-VAT amount so 19% of £91.7K = £17.4. Those figures tot up to £35.7K - not quite £44K. But as was pointed out when the car is sold VAT and and corporation tax have to paid on the proceeds.

MrOrange

2,031 posts

252 months

Sunday 9th April 2017
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AW10 said:
As can corporation tax on the ex-VAT amount so 19% of £91.7K = £17.4
And if you're an LLP, or sole trader, or private partnership rather than an Ltd?

And, yes, you do need to include the selling price in your profits, but that will be a lot less than the initial writedown.

Heres Johnny

7,175 posts

123 months

Monday 10th April 2017
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AW10 said:
Just a guess but if the car (with options) sells for £110K there's VAT bill of £18.3K included so that VAT can be claimed back. As can corporation tax on the ex-VAT amount so 19% of £91.7K = £17.4. Those figures tot up to £35.7K - not quite £44K. But as was pointed out when the car is sold VAT and and corporation tax have to paid on the proceeds.
It's almost impossible to claim vat back on a vehicle purchase as you have to prove it's solely fir business use.

W7

14 posts

83 months

Thursday 27th April 2017
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Where do you guys think i8 prices will be going over the next year? Hold steady? Or drop once a new i8 is revealed at the motor show in September?


Im looking to buy a used i8 at the end of the year when my i3 goes back.

johnnyreggae

2,930 posts

159 months

Thursday 27th April 2017
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The i8 Roadster is a bit niche of a niche so unlikely to affect values - it is unclear yet if the facelift/upgrade to the original will be released at the same time - quite often a facelift can help values of the older model as supply of the newer becomes restricted and the opportunities to discount lessen

JiggyJaggy

1,449 posts

139 months

Thursday 27th April 2017
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These seem to have settled at £62k plus for now. aw a white one near home last night. Looks so good under the night street lights!

TheBMWDriver

591 posts

153 months

Tuesday 16th May 2017
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Prices seem to be stronger now.


The way I see it:

new one will come out, GBP is around 10 to 15% down not the Euro so prices will go up around 10%, couple of percent for inflation, the £25k discount that you can get will become smaller.

So a new i8 will probably cost £25k more than a new one now which can old put the prices of the old one up.

culminator

Original Poster:

576 posts

208 months

Friday 5th January 2018
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As the OP of this thread, I thought I'd give an update. I actually bought a 2015 i8 in October and i have to say, I'm absolutely loving it. No other car has come close to the ability of this. It seems to do everything well and looks sensational. It's far more of a drivers car than I thought it would be, so much so that I recently sold my Caterham and Twisted Defender as was no longer using them.

Genuine MPG overall is 56MPG and that's a mixture of short local electric mode only journeys and good blats. It's by far the best car I've had as a toy and think they now represent incredible value.

FeelingLucky

1,082 posts

163 months

Saturday 6th January 2018
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I have to say I agree.

I got mine in October 16, and I'm still loving it. It's a VERY nice place to be, and remarkably quiet and smooth.
My ave MPG is sitting at 96, but I suspect my use is more skewed to short local (Batt only) than yours.

erics

2,659 posts

210 months

Monday 15th January 2018
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3 years in for me. I bought it brand new.

Have a baby seat in the back for my 19 month old daughter.

Nothing comes close for the money in my view.

I average 50mpg, sometimes driving it hard.

Just renewed insurance with NFU (my first time with them), came in at £662. Nearly half the cost of my previous insurer. Well pleased.

Edited by erics on Monday 15th January 14:13

anthony1981

10 posts

101 months

Tuesday 23rd January 2018
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Would i buy one new personally... No id buy a Porsche all day, but the i8 on a business lease deal was a no brainier when coupled with the Low BIK it attracts.

I managed to secure mine on a business lease for £814 a month on a two year deal (6+23) and i use it as my daily driver for work. The i8 worked out cheaper than an M4 and only marginally more than my 5 series load lugger i had previously when considering the benefit in kind.

To illustrate the costs i looked at:

M4 - £775.63 + VAT per month

Company car tax as a 40% tax payer (no personal allowance left) an eye watering £858.00 per month

CO2 Emissions: 194g/km
P11D: £59,005.00

i8 - £814.01 + VAT. per month

Company car tax as £358.00 per month (first year i know this raises in the second)

CO2 Emissions: 49g/km
P11D: £108,715.00

So to summarise i faced the decision of a basic BMW M4 with a total monthly payout including BIK of £1,633.63 or a BMW i8 with some options of £1,172.00.00

My 5 series with BIK was somewhere in the region of 950 a month anyway. so when i mention to people that the i8 is only really 200 a month more than my previous 5 series no one believes me.

I took the kids to school in it this morning and then did a 120 mile round trip to a site before coming back to the office I am averaging 34 mpg but rarely plug it in to charge.





Heres Johnny

7,175 posts

123 months

Tuesday 23rd January 2018
quotequote all
anthony1981 said:
Would i buy one new personally... No id buy a Porsche all day, but the i8 on a business lease deal was a no brainier when coupled with the Low BIK it attracts.

I managed to secure mine on a business lease for £814 a month on a two year deal (6+23) and i use it as my daily driver for work. The i8 worked out cheaper than an M4 and only marginally more than my 5 series load lugger i had previously when considering the benefit in kind.

To illustrate the costs i looked at:

M4 - £775.63 + VAT per month

Company car tax as a 40% tax payer (no personal allowance left) an eye watering £858.00 per month

CO2 Emissions: 194g/km
P11D: £59,005.00

i8 - £814.01 + VAT. per month

Company car tax as £358.00 per month (first year i know this raises in the second)

CO2 Emissions: 49g/km
P11D: £108,715.00

So to summarise i faced the decision of a basic BMW M4 with a total monthly payout including BIK of £1,633.63 or a BMW i8 with some options of £1,172.00.00

My 5 series with BIK was somewhere in the region of 950 a month anyway. so when i mention to people that the i8 is only really 200 a month more than my previous 5 series no one believes me.

I took the kids to school in it this morning and then did a 120 mile round trip to a site before coming back to the office I am averaging 34 mpg but rarely plug it in to charge.
Factor in your business rental is presumably pre tax so the difference after tax is probably only half that.

anthony1981

10 posts

101 months

Tuesday 23rd January 2018
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Heres Johnny said:
Factor in your business rental is presumably pre tax so the difference after tax is probably only half that.
Indeed!

i did do a little calculation for my previous post as if i was to draw the money out as a salary and the sort of vehicle i could have drive / bought with the millage claims at pence per mile but it turned into a power point presentation type

oop north

1,592 posts

127 months

Tuesday 23rd January 2018
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anthony1981 said:
Indeed!

i did do a little calculation for my previous post as if i was to draw the money out as a salary and the sort of vehicle i could have drive / bought with the millage claims at pence per mile but it turned into a power point presentation type
Do make sure you factor in the increase in bik from April 18 and again in April 19 - it’s a big rise

anthony1981

10 posts

101 months

Tuesday 23rd January 2018
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oop north said:
Do make sure you factor in the increase in bik from April 18 and again in April 19 - it’s a big rise
yes i see the increase, is imminent this April.

my car was on a two year deal from November 2016 so ill be out in November this year ( ill have 8 or so months of it) when i start looking for its replacement in august time i really have no idea what ill will get for that sort of money / bang for buck!...best get to the mini dealer

Heres Johnny

7,175 posts

123 months

Tuesday 23rd January 2018
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Yep (BIK) - I've a tesla - similar list value - and I decided to take it outside the company for a couple of years. Its got the added annoyance that I can't claim business mileage as a company car but can as a privately owned car and that alone is worth 3k a year to me, something you luckily don't need to worry about. But when BIK is down to 2% in 3 years it will be happy days

TheBMWDriver

591 posts

153 months

Tuesday 3rd April 2018
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The prices still seem to be falling but I think they will firm up soon.

A lot of cars where sold In 14 and 15 which are coming off lease now but only something like 250 cars where sold each year in 16 and 17 and I assume with the underwhelming face lift and price hike even fewer cars will be sold in 2018

anonymous-user

53 months

Tuesday 3rd April 2018
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TheBMWDriver said:
The prices still seem to be falling but I think they will firm up soon.

A lot of cars where sold In 14 and 15 which are coming off lease now but only something like 250 cars where sold each year in 16 and 17 and I assume with the underwhelming face lift and price hike even fewer cars will be sold in 2018
Not sure I follow your logic. They’ve never been big numbers and the lower sales indicate a lower demand for new cars, which may well be the same for used.

Sales only tend to ‘firm up’ when demand outstrips supply. That’s not the case here.