Clarification On Lease purchase settlement please!
Discussion
A friend of the wife is fairly bad with financial things and i have no clue so i am asking the PH gurus for a bit of guidance!
He currently has a van that he uses for his business (he isn't VAT registered) and this was financed through VW Lease Purchase.
He now wants to get rid as he is looking to semi retire, and is looking to sell it back to the dealer. He got a settlement figure emailed from VW but it is a total rather one with VAT separated but he is 100% convinced that the total includes VAT.
Upon speaking to the dealer they have offered him a price slightly lower than the settlement and they are saying that they won't be adding VAT as it is not a vat able vehicle?
So, are they correct? I would assume that the vehicle still belongs to VW finance and if the dealer paid them the settlement figure that VAT would be included in the final figure and the dealer would pay x amount plus VAT leaving a bit of profit to go back to the 'hirer'?
He currently has a van that he uses for his business (he isn't VAT registered) and this was financed through VW Lease Purchase.
He now wants to get rid as he is looking to semi retire, and is looking to sell it back to the dealer. He got a settlement figure emailed from VW but it is a total rather one with VAT separated but he is 100% convinced that the total includes VAT.
Upon speaking to the dealer they have offered him a price slightly lower than the settlement and they are saying that they won't be adding VAT as it is not a vat able vehicle?
So, are they correct? I would assume that the vehicle still belongs to VW finance and if the dealer paid them the settlement figure that VAT would be included in the final figure and the dealer would pay x amount plus VAT leaving a bit of profit to go back to the 'hirer'?
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