When buying a car from a ltd (non dealer) company

Bradden

mybestattempt said:

Sorry I don't agree.

After I sell the car I use in my business to my neighbour's son for his private use, I would defend any claim he made under CRA 2015 on the basis my trade is not selling cars.

You may wish to defend on that basis but it doesn't mean it's correct legally which is what most of the discussion is about.

prowla

premiumz said:

born_again said:

premiumz said:

Hi,

I'm looking at buying a car from a ltd company. It's not a car dealership.
Do you have any consumer rights when buying a car that's been registered in a ltd company's name or does that only apply to actual car dealers?

Is this pretty much the same as buying from an individual?

Just wanted to check on this!

Cheers

So to clear some points up.
Just who is selling the car?
The company or a employee, director of said company?
Who is stated as registered keeper on V5, as if bought by company, there may be VAT to pay

On the V5 under registered keeper is "company name ltd".

All invoices/services that the vehicle has had done at the main dealership has the directors name and company name underneath it. Not sure why that is as the registered owner has only the company name on it. The guy I saw that showed me the vehicle is the director of the company. So I have met him in person.

They have not mentioned VAT to me at all. We have been negotiating a price. Not once was VAT mentioned in person or on the listing.

That's pretty much where it's at right now.

That is a valid point; if the company is VAT registered then sale of their assets is VAT applicable.

It would be worth confirming that the price is full retail (ie. not +VAT).

the_lunatic_is_in_my_head

I concur with DullGreyGuy, maybe it's ambiguous if it's a sole trader but an LTD is different, the money, the stock, the assets do not belong to a person, they belong to the LTD and if that LTD sells an asset then they are acting in the course of their business.

Question for the OP is does the company know this and are they familiar with dealing with consumers, might be wise to put £100 odd down on a credit card if the car is less than £30k. 

mybestattempt

Sorry, I'm still not persuaded and stand by my interpretation of the legislation.

If I find anything which supports my position, or otherwise, I will post with any available links.

timjim

Under normal circumstances VAT is not recoverable when a company buys a car but can be for a van.

"If you sell a car on which you were charged VAT but could not reclaim it, you are not required to charge VAT on the sale. The sale of the car is exempt from VAT and any VAT incurred on the cost of selling the car, for example, auction fees, cannot be reclaimed (subject to the partial exemption de minimis rules)." Shorts Accountants 

sheramber

Is the car still registered to the lyd company?
Are you paying the lid company or the director?