Negotiating for a car tomorrow - how do I play the VAT reduction?

Lemonade_Pockets

djm1972 wrote: »

Thanks - i'd automatically assumed that used cars weren't any kind of special case.

The 6'o'clock news this-evening included a few "before and after" examples of what the VAT reduction would mean and one was a new car, but a quick search on VAT on used cars talks about a "margin scheme" whatever that is!!

Margin scheme is basically that the dealership pays VAT on the profit between purchase price and the sale price of the vehicle. But unless you find out how much profit their making you'll never know this figure so its not worth worrying about.