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LEON depreciation in ust one year
- Thread starter LEON2DRIVER
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- depreciation leon ust year
Lets face it, you could get a bag full of problems with any car and the internet will be full of similar stories based on other manufacturers. It's the same with everything, my home computer monitor went on the blink after 13 months of ownership (nicely outside of warranty period of 12 months!) and my office monitor has just started playing up after 3 months! Some people will have problem free ownership for years.
As for depreciation, even though you have had/still got problems with the car I personally think you would be mad to chop it in now. You will have lost a bomb in this short time - even more than after 12 months, pro rata. I myself feel that I had to go back to the dealer more times than going to work in the first few months but take a deep breath, get the problems fixed under warranty and the enjoyment of ownership will return, I'm sure
And as for the huge difference in dealer retail and dealer part exchange, although I agree that most of us on the face of it get stung, the dealers do have to pay Tax and VAT on the profit they make! For most Limited Company dealerships they could be looking at a combined 37.5% - 47.5%! Factor in their overheads and it doesn't seem quite as bad a sting.
As for depreciation, even though you have had/still got problems with the car I personally think you would be mad to chop it in now. You will have lost a bomb in this short time - even more than after 12 months, pro rata. I myself feel that I had to go back to the dealer more times than going to work in the first few months but take a deep breath, get the problems fixed under warranty and the enjoyment of ownership will return, I'm sure
And as for the huge difference in dealer retail and dealer part exchange, although I agree that most of us on the face of it get stung, the dealers do have to pay Tax and VAT on the profit they make! For most Limited Company dealerships they could be looking at a combined 37.5% - 47.5%! Factor in their overheads and it doesn't seem quite as bad a sting.
Hi Paul,
For the tax issue, firstly on the sale of a new car there is of course with many things 17.5% vat (value added tax) but the buyer pay the tax NOT the dealer. Then if you part exchange the car with the dealer, the dealers does not pay vat on the amount they bought the car for. If the dealer then sells the car later they only pay vat (17.5%) on the profit not the total sum this is called the margin scheme.
So for example if you part ex a car and the dealer gives you 10k for it, the dealer then sells it for 13k, making 3k profit they pay £525 in tax for that profit (3,000 * 0.175). The other tax you mentioned I guess is company tax, which all businesses in the uk have to pay but again it's on profit not on turnover.
Using the tax situation to to justify giving customers a bad deal sounds a feeble reason to me, as you only pay tax proportionally on profit not turnover so charging more does indeed mean more tax but it also means more profit. Also you can offset the profit against running costs like your the rent of your premises etc. I learned the small specifics to automative taxation because I owned and ran a car import company for years and did all my own books etc.
For the tax issue, firstly on the sale of a new car there is of course with many things 17.5% vat (value added tax) but the buyer pay the tax NOT the dealer. Then if you part exchange the car with the dealer, the dealers does not pay vat on the amount they bought the car for. If the dealer then sells the car later they only pay vat (17.5%) on the profit not the total sum this is called the margin scheme.
So for example if you part ex a car and the dealer gives you 10k for it, the dealer then sells it for 13k, making 3k profit they pay £525 in tax for that profit (3,000 * 0.175). The other tax you mentioned I guess is company tax, which all businesses in the uk have to pay but again it's on profit not on turnover.
Using the tax situation to to justify giving customers a bad deal sounds a feeble reason to me, as you only pay tax proportionally on profit not turnover so charging more does indeed mean more tax but it also means more profit. Also you can offset the profit against running costs like your the rent of your premises etc. I learned the small specifics to automative taxation because I owned and ran a car import company for years and did all my own books etc.
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Lol
PMSL, I've been an Accountant for 10 years so don't need the lesson
Did my last paragraph not mention paying VAT and tax (corporation tax) on the profit? - never mentioned turnover.
PMSL, I've been an Accountant for 10 years so don't need the lesson
Did my last paragraph not mention paying VAT and tax (corporation tax) on the profit? - never mentioned turnover.
Ha, ha sorry guys - wrong forum for silly stuff like that
Siwel, I'm glad you deleted yours - I put a lengthy post together, pointing out various things that you said that sounded a touch odd but hey, there's more to life so I deleted it.
No hard feelings pal
For the record I completely agree that we generally get our pants pulled down by dealers
Siwel, I'm glad you deleted yours - I put a lengthy post together, pointing out various things that you said that sounded a touch odd but hey, there's more to life so I deleted it.
No hard feelings pal
For the record I completely agree that we generally get our pants pulled down by dealers
I was exactly the same! In fact it's only been since mid morning today that I've calmed down. Had to re-jig plenty of emails/letters at work yesterday cos I found myself getting irate!
wag
Guest
HI, READING ABOUT YOUR OBVIOUS RELUCTANCE TO STICK WITH SEAT, I WAS IN THE SAME SITUATION MYSELF ONLY 4 MONTHS AGO. BOUGHT BRAND NEW LEON FR TDI 3 MONTHS AFTER LAUNCH KEPT IT 6 MONTHS WENT IN DEALERS A TOTAL OF 9! TIMES WITH SAME ENGINE FAULT. EVENTUALLY SPOKE TO DEALERSHIP PRINCIPLE WHERE HE SAID AS A GOOD WILL GESTURE THEY WOULD GET ME A BRAND NEW 07 EXACTLY SAME SPEC 18 INCH WHEELS, CONVENIENCE PACK.THEY WANTED £1200 OFF ME WHERE AS I TOLD THEM EVENTUALLY AGREED AT A RELUCTANT £900. FOUR MTHS DOWN LINE NOW HAD NO PROBLEMS AT ALL, GLAD I STUCK WITH SEAT BUT WAS SO CLOSE TO CHANGING MANUFACTURERS. KEEP MOANING AND BADGERING THEM IN THE END THEY WILL HOPEFULLY DO SOMETHING FOR YOU,AS IN MY CASE THEY WERE JUST GLAD TO SEE BACK OF ME.
EVENTUALLY AGREED AT A RELUCTANT £900. FOUR MTHS DOWN LINE NOW HAD NO PROBLEMS AT ALL, GLAD I STUCK WITH SEAT BUT WAS SO CLOSE TO CHANGING MANUFACTURERS. KEEP MOANING AND BADGERING THEM IN THE END THEY WILL HOPEFULLY DO SOMETHING FOR YOU,AS IN MY CASE THEY WERE JUST GLAD TO SEE BACK OF ME.
wag
Guest
Hi, The Paticular Fault I Had With My Vehicle Was Loss Of Power And A Noise That Resemled A Sticking Valve Which Made It Sound Like A Clapped Out Diesel!. Only Covering 5000 Miles I Knew This Could Not Be The Case. Dealer Technicians Took The Car Home On 2 Occasions For A Period Of Two Weeks But Could Not Get The Problem To Occur (maybe The Radio Was Too Loud Or It Does Not Happen At A Constant 4500 Revs![[:@]](/forums/styles/seatcupra/oldforumsmileys/furious.gif "Furious [:@]")
, But He Did Leave A Sweet Stuck To Back Seat And A Dent In Door Which Had To Be Rectified In Thier Bodyshop, (bless Him). One Other Thing To Note Was Poor Paint Work On Front Bumpers (patchy) This Was The Case On Both Of My Vehicles Both Being In Luna Grey Thus Another Trip To Bodyshop!. Hope This Hels You And Good Luck.ps. They Confimed The Engine Fault Was Not The Dpf.
, But He Did Leave A Sweet Stuck To Back Seat And A Dent In Door Which Had To Be Rectified In Thier Bodyshop, (bless Him). One Other Thing To Note Was Poor Paint Work On Front Bumpers (patchy) This Was The Case On Both Of My Vehicles Both Being In Luna Grey Thus Another Trip To Bodyshop!. Hope This Hels You And Good Luck.ps. They Confimed The Engine Fault Was Not The Dpf.I bought a Leon Mk 2 TDi Sport beginning of 2006, put about 17.8k on the clock and traded it in this April for my FR.
Bought the Sport at £14,995 (i think) and traded it in for £12k...... so £2k in a year with above avg mileage wasn't too bad!
Considering it had a huge scratch down the driver side, issues with the turbo and also 3 different makes of tyres, I thought I did pretty well.....
Saw it on sale on the forecourts for £12,995 about a fortnight later........
Bought the Sport at £14,995 (i think) and traded it in for £12k...... so £2k in a year with above avg mileage wasn't too bad!
Considering it had a huge scratch down the driver side, issues with the turbo and also 3 different makes of tyres, I thought I did pretty well.....
Saw it on sale on the forecourts for £12,995 about a fortnight later........
I think i'll be keeping mine, I've done over 24k miles and haven't had it for 11 months yet
The original plan was to keep it for 3 years then look around again. Anyone want a stab on how much a 3 year old tdi Ref Sport with 75k on the clock will be worth in 2 years time
The original plan was to keep it for 3 years then look around again. Anyone want a stab on how much a 3 year old tdi Ref Sport with 75k on the clock will be worth in 2 years time
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