F8X M3/M4 buying new= bragging rights- not clever

[Clownshoe]

Given the amount of crap people have with new cars. I have never had a new one but it seems that new cars are always in and out of the dealers to fix small stuff. I recon an M5 with 25,000km should still be brand new.

 

[GPGrobler]

When the E30 came out as a new car, I saw several of them stuck next to the highway, when puttering past them in my little second hand 1976 1.6 GL Ford Escort, with their bonnets open, the owners looking furious and frustrated.

All those teething problems the new E30's were having, have since then been ironed out, now making it one of the most reliable cars ever made, so now I am puttering past all these fancy new diesels standing next to the road with my little second hand 1990 E30 318i :roflol: :joy:

 

[pimpassdaddy]

New cars have 14% VAT on the purchase price which should be written off as soon as you buy a new car, as VAT is charged only on new cars.

Because the product has already been taxed when sold new, it cannot be taxed again. So buying a car used, even just for a few km should theoretically cost 14% less than the new price!

That is probably where the first 10-15% loss comes in.

Thereafter, the market margins for top end used cars and M cars probably is quite low. Maintenance costs and high risk, including insurance high risk premiums and future resale values probably make top end and luxury cars hard to dispose of off showroom floors.

However, that does leave plenty of really great cars available at great value for people who have the resources and desire to own a great top end or luxury car.

Used cars are also charged VAT. You cannot perform a transaction as a VAT registered vendor without charging VAT. It's sales tax, and by that, every sale must have VAT levied on it (provided the seller is a registered VAT vendor).

That said, I'm more than happy with a preowned vehicle that has motorplan. You can literally buy it over the phone because a motorplan gives the ultimate piecec of mind.

 

[prado]

Yes, correct, VAT is applicable to dealers but I believe the VAT applies only to the profit in the case of used cars.

 

[pimpassdaddy]

Yes, correct, VAT is applicable to dealers but I believe the VAT applies only to the profit in the case of used cars.

No it's not. VAT is a "SALES TAX". That means that VAT is applied on the final selling price, not on profit. That is output VAT, that which you pay over to SARS.

Input VAT is that which when you buy from a supplier and are charged VAT, you claim it back (input VAT) and charge it on the final (yours) selling price of a product or service.

That's why I can buy a bakkie (single cab or super cab) and claim VAT back. That's justifiable to SARS by that the bakkie is part and parcel of the input costs in generating a final product, hence I can't pay VAT on input costs (if VAT registered). I therefore claim it back.

I hope you can understand what I mean.

 

[Maljan]

One reason to buy a new high performance car is that you know exactly where it has been.

Nowhere.

Except for the ship, the train and the delivery truck, that is.

A used example may have been flogged to within inches of its life. Yes, it is built to take it. Yes, the MP will cover anything that goes wrong. Then again, it may not work out well if you get involved with the wrong sort of stealership. They might not fix it properly.

Having said all that, an enterprising mechanic could still flog your shiny new/used ride to within inches of its life on a test drive. You can't win.