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Will I lose out selling a van privately?
Hi Can you explain how the process for VAT works when trading in commercial vehicles purchased privately. I understand that I will pay the full price inc VAT in a new vehicle as a private purchaser however my question is whether the trade in value will consider this or will I in effect loose 23% of my purchase price when I trade up my vehicle in 3 years time. Thanks.
Our answer:
Hi Alan,
You will be at a disadvantage, yes, as there is no way for you to recover that 23 per cent originally paid and you can't invoice a dealer with a VAT invoice on trade-in so you'll not be offered a price that takes into consideration the VAT.
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