No VAT on used car but same price

I am about to buy a used Volvo V7 D5 Auto from our local Volvo dealer. I only drive about 5,000 miles per year, almost always on long trips (I ride a bike 90% of the time).

It was first registered 2008, one owner, 100,500 mainly motorway miles, no towing, sold and serviced by the dealership, part exchanged for another new V7, "looks and drives like new".

The dealer is going to change the cam and auxillary belts and tensioners and replace the discs all round (the pads are new). Tyres are OK. Interior is immacualte.

Question 1 - anything else I should look out for and ask them to do?

Question 2 - is £9000 a reasonable price (with 6 months guarantee and they will fit reversing sensors).

Question 3 - when we agreed £9000 the garage thought that there would be about £1500 VAT. They now realise that it is not VAT qualifying and have manually altered the contract to add the VAT on to the pretax price (ie the original £7500 + VAT has been altered to £9000 with no VAT). Should I haggle them down to nearer £7500 assuming that this is what they expected to get originally and the lack of VAT is a £1500 windfall that we should share, or shall I accept that I do not understand how VAT works and they are in fact not making an additional £1500?

Thanks

Tim H

Asked on 25 November 2014 by ENTBedford

Answered by Honest John
1: Water pump at the same time as the timing belt change. It's a weak spot and if it fails the timing belt comes off and the engine self-destructs. 2. The price is a bit steep for the mileage: www.honestjohn.co.uk/used-prices/Volvo/V70/2008/?q...5 3. Nothing to do with you. No windfall for anyone. Had it been VAT qualifying they could have reclaimed the VAT input tax, but would have had to charge VAT on the sale price and pay that to HMRC.
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