VAT and depreciation

[nickfrog]

I am confused. Why do some people say that part of the reason a new car depreciates quickly is because of the VAT ? That doesn't make sense as once sold for the first time, the VAT element disapears (I assume) and a dealer buying in a second hand car only pays VAT on the profit once he has resold it. Am I missing something ?

Edited by nickfrog on Wednesday 27th February 20:39

[Ozzie Osmond]

You are right.

But this topic has been done many times before.

[nickfrog]

Thanks.

[Captain Muppet]

nickfrog said:

Am I missing something ?

What you are missing is that people who say depreciation is the VAT are idiots.

[mccrackenj]

The market value of any item, be it a 2nd hand car, a new handbag, a house, an hour's labour or anything else will depend solely on what potential buyers of that item are able and willing to pay at the point in time it is offerred for sale. NOTHING ELSE.

The cost to the vendor of manufacturing, procuring or supplying that item, including any taxes or duties involved in supplying that item, is compeletely irrelevant.

But please don't start a thread on it, it's been done before and it gets very complicated . .

[nickfrog]

mccrackenj said:

But please don't start a thread on it, it's been done before and it gets very complicated . .

A bit late now...

[Rochellc01]

nickfrog said:

A bit late now...

Please just search for an existing thread, it isnt worth the hassle again...

[nickfrog]

Rochellc01 said:

nickfrog said:

A bit late now...

Please just search for an existing thread, it isnt worth the hassle again...

What hassle ? what are you on about? I got an answer, I said thanks. End of. If you don't like this thread, can I suggest you leave it alone, trot on. Cheers.