Suzuki Swift - VAT free but....

50Twuncle

I am looking to replace my 3 year old Swift automatic and saw that Suzuki main dealers are currently paying VAT on the whole range - which you would think would take 20% off the list price
However on investigating the (price fixed !!) Swift prices on http://www.suzuki4.co.uk/ - The VAT isn't all taken off
Which is a shame - I really like the car...

marlot

Can't be bothered to find the figures if you just link to the home page!

Effectively removing the VAT is NOT the same as taking 20% off.

If something costs £100 + 20% VAT, it costs £120
If you subtract 20% from £120 you get £120 - £24 - £96. To get back to the non-VAT price, you have to take 16.7% off.
£120 - 16.7% = £100

rs65

£10,660 down to £8,880

£8,880 plus 20% = £10,656

50Twuncle

So I have been quoted £12059 by multiple dealers for a non-metallic SZ4 automatic - what does that make the vat inclusive price ?
£12059 * 1.2 = £14470.80
but if you remove 20% from £14470.80 - you get £11576.64
So who is correct ?

thanks

stone7

21Twinkle wrote: »

So I have been quoted £12059 by multiple dealers for a non-metallic SZ4 automatic - what does that make the vat inclusive price ?
£12059 * 1.2 = £14470.80
but if you remove 20% from £14470.80 - you get £11576.64
So who is correct ?

thanks

According to THIS you shouldn't be paying much over £13k for the top model and without any discounts.

£13,000 divided by 1.2 gives a price of £10,833.

rs65

21Twinkle wrote: »

£12059 * 1.2 = £14470.80
but if you remove 20% from £14470.80 - you get £11576.64
So who is correct ?

thanks

You need to divide by 1.2 - not take 20% off.
£14470.80 / 1.2 = £12059
You multiply by 1.2 to add VAT on and divide by 1.2 to take it off.
They are right.

Strider590

Another thread about throwing large sums of money away for a new car purely because the current one isn't brand new.
(I hate the lying thieving scumbag dealerships, so I never buy new cars)


Maybe get a private/vanity plate so that nobody can tell how old the car is? That's got to be cheaper than a new car every 3 years?

shaun_from_Africa

21Twinkle wrote: »

but if you remove 20% from £14470.80 - you get £11576.64

What you have to remember is that the figure of £14470.80 is made up of the cost of the vehicle and the VAT added on. If you then remove 20% from this total you are taking 20% off the vehicle price but you are also taking 20% off the VAT.


A very simple way to show it is to consider an item valued at £100 and VAT at 10%.

If you add on the 10% VAT then the selling price would be £110, but if you knock 10% off this figure (£11) then this would reduce the goods to £99.
You need to knock off about 9% to get the price back to the pretax price of £100.

50Twuncle

Strider590 wrote: »

Another thread about throwing large sums of money away for a new car purely because the current one isn't brand new.
(I hate the lying thieving scumbag dealerships, so I never buy new cars)
Maybe get a private/vanity plate so that nobody can tell how old the car is? That's got to be cheaper than a new car every 3 years?

It is people like me that keeps the economy moving - and as for private plates - why.... ?
Nobody is forcing you to Read threads like this or Buy new cars