Disabled car scam

Author
Discussion

Leftie

Original Poster:

11,684 posts

208 months

Thursday 26th July 2007
quotequote all
Did anyone see the scam being investigated by South Yorks police on Radio 4 and in the Times today?

Disability adapted vehicles are VAT free.

Registered disabled person buys an adapted car, whips off the adaptations (which can be as slight as a knob on the steering wheel) and sells it on, pocketing the VAT and undercutting the dealer. I wonder if they took orders to your spec?

They have been buying top end Range Rovers, Maseratis anmd Lambos and making a fortune. One cluster of people have bought and sold 60 vehicles.

Seems there isn't much the authorities can do about it except stop their benefits for working as motor traders and it seems some of them have faked or over claimed their disability to get on the bandwagon.

Must go, I can feel a back pain coming on.

Hendry

1,945 posts

255 months

Thursday 26th July 2007
quotequote all
I have always said you shouldn't trust anyone with a limp.

The Griffalo

72,835 posts

212 months

Thursday 26th July 2007
quotequote all
Hendry said:
I have always said you shouldn't trust anyone with a limp.
irked

rich 36

13,739 posts

239 months

Thursday 26th July 2007
quotequote all
Hendry said:
I have always said you shouldn't trust anyone with a limp.




or in a Rangie'




they're the very worst

Hendry

1,945 posts

255 months

Thursday 26th July 2007
quotequote all

Is the "knob on a steering wheel" a disability or an adaptation?


Parrot of Doom

23,075 posts

207 months

Thursday 26th July 2007
quotequote all
Wish I'd thought of that frown

Dracoro

8,085 posts

218 months

Thursday 26th July 2007
quotequote all
Sorry, how does this work again;

Buy car at, say, £50k (£58k if they had to pay VAT)
Despite 0 miles if they don't use it, car is still 2nd hand so worth, what £50k tops.
So how do they make money. If it doesn't fetch £50k they lose money.

Chrisgr31

12,418 posts

228 months

Thursday 26th July 2007
quotequote all
I heard about this on PM last night. Thought they were talking about fraud and that there was some clause in the legislation that may allow the clawing back of the VAT?

Leftie

Original Poster:

11,684 posts

208 months

Thursday 26th July 2007
quotequote all
Hendry said:
Is the "knob on a steering wheel" a disability or an adaptation?
Its the knob behind the wheel I worry about.

g_attrill

6,084 posts

219 months

Thursday 26th July 2007
quotequote all
Some news stories:

http://www.telegraph.co.uk/news/main.jhtml?xml=/ne...
http://www.timesonline.co.uk/tol/news/uk/crime/art...
http://news.bbc.co.uk/1/hi/uk/6916333.stm

One article suggests they were selling them to dealers.

If they were buying them unregistered presumably they could be sold

Clearly a solution is to make the VAT exemption based on a minimum period of ownership, say a year. The DVLA currently enforce this for personal imports, if you sell a personally imported vehicle within a certain time you are liable for duties which were exempted on import.

Leftie

Original Poster:

11,684 posts

208 months

Thursday 26th July 2007
quotequote all
Dracoro said:
Sorry, how does this work again;

Buy car at, say, £50k (£58k if they had to pay VAT)
Despite 0 miles if they don't use it, car is still 2nd hand so worth, what £50k tops.
So how do they make money. If it doesn't fetch £50k they lose money.
I think they may take orders at the top end, there was even some suggestion they ordered 'hard to get' vehicles (maybe they also jump the queue). Perhaps the drop on these cars isn't as much as zero mileage second owner cars. It is till money for old rope, especialy in the custionmer pays you for the car dso you just cream a few grand for going into the showroom and making the order.

stuthemong

1,931 posts

190 months

Thursday 26th July 2007
quotequote all
I knew about a guy who did something similar, posted on M5board.

HE was getting cars like a new M6 coupe, and running it for 6 months before flogging on, and effectively getting all his money back.

Initially you think its a bit cheeky, but FFS, Id rather drive my fiesta than have to spend my life in a wheelchair, as would he I bet.

If it means they get cheap motoring, I think fair enough. Buying to sell on for profit is a little cheeky, but then, I'd much rather the laws allowed disabled peeps as much leeway as possible - how rubbish would it be if that actions of a few ruined it for tens of thousands of disabled people?



The Hitman

2,584 posts

183 months

Thursday 26th July 2007
quotequote all
I would have thought this was a private market scam (that really doesn't seem much of a "scam" TBH, if it was a fake THEN its a scam!).

With the private market you could probably sell the car for more than a dealer would purchase it from you, so why bother with the dealer at all?

Strawman

6,463 posts

180 months

Thursday 26th July 2007
quotequote all
stuthemong said:
If it means they get cheap motoring, I think fair enough. Buying to sell on for profit is a little cheeky, but then, I'd much rather the laws allowed disabled peeps as much leeway as possible - how rubbish would it be if that actions of a few ruined it for tens of thousands of disabled people?
clap
not sure about your username though scratchchin

markmullen

15,877 posts

207 months

Thursday 26th July 2007
quotequote all
Leftie said:
Dracoro said:
Sorry, how does this work again;

Buy car at, say, £50k (£58k if they had to pay VAT)
Despite 0 miles if they don't use it, car is still 2nd hand so worth, what £50k tops.
So how do they make money. If it doesn't fetch £50k they lose money.
I think they may take orders at the top end, there was even some suggestion they ordered 'hard to get' vehicles (maybe they also jump the queue). Perhaps the drop on these cars isn't as much as zero mileage second owner cars.
yes I know of one chap who was doing this, ordering top end stuff, AMGs, BMW 6 Series, M5s etc and then flipping them straight away. When I heard about him doing it he'd done about 15, I sincerely hope he was one of the ones who got busted.

Mrs Trackside

9,299 posts

206 months

Thursday 26th July 2007
quotequote all
The Griffalo said:
Hendry said:
I have always said you shouldn't trust anyone with a limp.
irked
He said with a limp, not who is a bit limp.




King Herald

23,501 posts

189 months

Thursday 26th July 2007
quotequote all
Hendry said:
Is the "knob on a steering wheel" a disability or an adaptation?
I always thought it was illegal to have one of them quick steering knobs on your wheel, but apparently only if you are a normal healthy capable driver.

If you have a disability you can have one. So, are they dangerous for ordinary drivers? Do they cause accidents?

How does all that work??? confused

markmullen

15,877 posts

207 months

Thursday 26th July 2007
quotequote all
King Herald said:
I always thought it was illegal to have one of them quick steering knobs on your wheel, but apparently only if you are a normal healthy capable driver.
I don't know about illegal but an easy-turn is excellent when combined with the oversteer handle for executing perfect handbrake turns.

Leftie

Original Poster:

11,684 posts

208 months

Monday 30th July 2007
quotequote all
Sunday rags suggested the GB Para-olympic team were at the core of it, doing a deal with the car dealer and the car didn't even leave the showroom. They split the profit. One guy did 100 cars.

BlackLabel

13,251 posts

96 months

Saturday 3rd December 2016
quotequote all
  • holy thread resurection*

Almost ten years on and the government still haven't closed this loophole. I wonder if any of the paralympians and dealers exposed in 2007 got prosecuted for VAT fraud?


The government is to bring in new laws that will tackle the “exploitation” of a scheme that allows wheelchair-users to buy significantly-adapted vehicles without having to pay any VAT.

article said:
An investigation by HM Revenue and Customs estimated that as much as £30 million of the £65 million annual cost of the VAT relief scheme was accounted for by people “exploiting” the system.

One individual who took advantage of it was found to have bought 70 Range Rovers, 20 Mercedes and five Porsches in just two years, while another bought 30 BMWs in a single day, according to the Treasury.