You should be able to negotiate some discount on a 5-series.
The BMW 520D SE saloon on-the-road list price is GBP £27,645. The Whatcar.com target price is GBP £25,260 (around 8-9% discount). If you’re buying new you should be able to buy ex-UK VAT – saves you having to reclaim the VAT back from Customs & Excise. The supplying dealer will probably require a copy of your passport and on registration in Ireland evidence that you have paid Irish VAT.
Car dealers prefer if you take out their finance as they get commission from the finance company. So offering ‘cash’ will not encourage them to give a larger discount
The nearest BMW dealer to Holyhead is Ffordd Maelgwyn BMW, Tremarl Industrial Estate, Llandudno Junction, Conwy, North Wales LL31 9PL. T: +44 1492 562400
What on earth? Why would somebody elect to re-claim the UK VAT and pay Irish VAT on a vehicle? English VAT is 17.5% whereas Irish VAT is 21%. Under EU Legislation an unregistered person for VAT purposes pays VAT in the EU country you purchase the goods from, subject to a few exceptions.
Why would somebody elect to re-claim the UK VAT and pay Irish VAT on a vehicle? English VAT is 17.5% whereas Irish VAT is 21%. Under EU Legislation an unregistered person for VAT purposes pays VAT in the EU country you purchase the goods from, subject to a few exceptions.
The bit of the post by Bannockburn about dealers not being encouraged by cash deals is also incorrect. A dealer naturally prefers to do a finance cash deal but should an individual pay with finance from elsewhere it won't make much difference to the discount. If your paying by cash you should expect to receive about a 10% discount but BMW dealers are particularly hard to get a discount from.
the reason to get the UK vat reduction, is that you have to pay Vat anyway when importing new/nearly new car, so no point paying twice, and since for export UK dealer should facilitate. Otherwise you will pay UK price & Vat, VRT and Irish vat.
iceman732
Yes I'm aware of the 6 months rule, there's also a milage implications on that rule. There's certain ways around it though....
Thanks for the clarification Cloughy. My understanding also is that you have to pay VAT on new cars being imported into Ireland at 21% irrespective of whether VAT has been paid in another EU state.
For further info on importing a new car and information on VAT see the thread www.askaboutmoney.com/showthread.php?p=603419#post603419.
In relation to buying a car for ‘cash’, dealers make at least 3% to 4% on their finance. It doesn’t make business sense therefore that a dealer would provide the same discount for a ‘cash’ sale than a sale organised through their own finance. Why would a dealer ‘share’ more of their profit for a cash sale than a sale organised through their own finance?
A UK BMW dealer’s margin on a new car is around 15%. If they’re giving you a discount of 9%, there margin is then only 6%. The profit element from selling finance (3% to 4%) therefore is a huge part of their total profit.
I negotiated a deal with a garage in the past buying through the dealer finance. After researching further I realised I could get a more competitive APR through a personal loan. The dealer’s response to me buying through a personal loan was that they couldn’t proceed with the deal on the same terms as they depended on selling the finance as there wasn’t enough of a margin from solely selling the car.
I seriously hope you are not suggesting clocking a car. Because if you are then you are well out of order.
Please see below for my first response to this threadGlad to see your agreeing with the 9% discount now Bannockburn........
The BMW 520D SE saloon on-the-road list price is GBP £27,645. The Whatcar.com target price is GBP £25,260 (around 8-9% discount).
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