How to sell a s/h bike now?

[Davel]

Bought the Multistrada last March and because it's a company bike, recovered the VAT.

Advertised it now on PH, Autotrader etc at £5,650 because I'm changing bikes and this is what it stands me at after depreciation etc. It was £7,750 new.

I think that I've priced it right and it is certainly cheaper than others in the Autotrader but I only seem to attract scammers and time wasters.

I can trade it in but would prefer to sell personally, to get a bit more for it.

I'm not trying to push the bike here but what else should I consider doing to sell the bike now, as my BMW is due in 2 weeks.

[Badapple]

Ebay can work, but bikes don't go for wonderful prices on there. Especially at this time of year.
Can you hold out 2 months & there should be many more people in the market.

[gixxerrider]

Badapple is right.

This is the worst time of the year to sell a bike.

I have been told that my R1 (2000w) books in at £3500 to £4000 in the magic trade book at the dealer where I purchased it from but because of the time of year they will only give me £2500 for i.

However, should I wait another couple of months they will give me the trade value.

My advice would be to hang on to yours for a couple of months too or you might end up having to give it away.

Good Luck.

[Davel]

It's certainly give away time.

Paid £7,750 for it last March. BMW have had it underwritten at £4,200.

At least, since it's my company transport, I recovered the VAT.

Serves me right for changing so often.

[gr4]

If your company recovered the VAT on it when you bought it, the sale price should also be 'plus VAT' which is repayable to the VAT man. Bottom line, you make a net £4,468 from the £5,250 sale. What you save of course is the VAT on the depreciation.

[Davel]

Didn't think that s/h bikes attracted VAT

[Incorrigible]

Davel said:

Didn't think that s/h bikes attracted VAT

They don't normally but if you bought it for your company and claimed the vat back you'll need to pay the vat when you get rid of the asset

Or something like that, I think there's a time limit beyond which you don't have to pay too, but I'm not a tax accountant, just a bloke who tries to give Greedy Gordo as little as poss

[Davel]

Thanks anyway - will check with my accountant.

Much as I hate giving it away, can't upet them can we?

[beanorat]

Incorrigible is right, I'm afraid

( having to admit here that I'm a chartered accountant but never mind I'll get over it, it could be worse I could have been a lawyer)

if you claimed vat when you bought it through a business, you'll need to declare vat when you sell it

eg

sale price is £4200
net amount is 4200 times 100/117.5
vat is 17.5/117.5 times 4200

ie vatman gets 625.53 ( bast**d!) and you have to draw up a vat invoice

[clarkey]

don't panic just yet, I think I decided to start looking for a multistrada at the weekend, need to check with the boss first though...

[Davel]

The VAT situation seems a bit of a grey area to me.

I can buy a bike new, or an ex-demonstrator, and recover the VAT, whereas if I buy a s/h bike from a dealer then there's no VAT.

Still I will bow to your expertise.

My Multistrada is back at Ducati manchester for a few days, as there's a recall on them, to do with the oil cooler delivery and return valves. There's been a delay in getting the parts from Italy apparently.

Great bike if you do buy one!

[gr4]

VAT is payable once on a vehicle, so as soon as VAT has been paid to Customs and not claimed back, the VAT man has no further interest in the vehicle and the book is closed. That usually happens with the original new sale, hence we don't often see VAT on secondhand cars and bikes. But if the VAT was recovered on the original purchase, the book is still open and VAT is charged on the re-sale. This can carry on through multiple resales and only ends when it gets to a buyer who doesn't claim the VAT back. Thereafter the vehicle no longer attracts VAT. Tends to be the norm with commercial vehicles, but much less so with cars (companies can't reclaim the VAT on most company cars) and even less so bikes.