Citroen C4 Grand Picasso - Buying our next car - Discbrake03

Looking for a new car in around 4 months time, and have decided that the Citroen C4 Grand Picasso fits our needs.

But the VAT kills it. NO WAY am I handing HMRC around £5000 on a brand new model. Is this really how you are supposed to buy new clean, low energy cars etc etc. It's a complete rip off. It won't be happening.

So what good advice can you people give me here. I want a car no more than 12 months old, certainly in as new condition, and still warrantied by Citroen. It's only for our own private use, so we can't claim vat back. We accept that some vat will be payable, but this is extortionate, and has put us off buying new completely.

Ideas please. Lots of time to look into this, but we want to avoid getting ripped off.

Thanks.

Citroen C4 Grand Picasso - Buying our next car - Bromptonaut

The only way to reduce the VAT so far as I can see is to reduce the price. Get an offer from Drive the Deal or similar and see if local dealer will match.

Alernatively is the model available through Motorpoint or similar or is there an ex-demo available?

Bottom line is that since 1979 we've voted for governenments that regard the headine income tax rate as a one way move, down. Government's still need revenue an putting up VAT hasn't (yet) ha protestors out on the streets.

Citroen C4 Grand Picasso - Buying our next car - gordonbennet

They'll still have it from you one way or another, only two things guaranteed in this life, taxes and death.

The only way to avoid the VAT is to be in business for yourself, register for VAT, and do as many have, buy a twin cab pick up or crew van for the business.

Or, buy used carefully, but any repairs will still be subejct to VAT, they get your money whatever you do.

As for how tax is taken, i'm in the indirect taxation camp, my choice whether i want to buy the items and pay the tax, i don't so i don't.

Citroen C4 Grand Picasso - Buying our next car - Discbrake03

Thanks for these suggestions. We have decided to forget buying new. A great pity, but that VAT is just plain crazy and shows us how hypocritical governments are. Drive green, keep emissions low, help the dying economy etc etc, and then give them £5000 of our hard earned for the privilege, on money we have already paid tax on when we earned it !

Nah !! We will just buy some second hand old nail of an oil burner. Well not quite, but it's been a real disappointment to us to be in the position of being able to buy new, but to be completely put off by this iniquitous tax which is plain government greed.

No incentive to buy a new car at all for a private buyer. None whatsoever.

Thank you for your help.

Citroen C4 Grand Picasso - Buying our next car - oldroverboy.

this iniquitous tax which is plain government greed.

No incentive to buy a new car at all for a private buyer. None whatsoever.

Thank you for your help.

You want Free healthcare, free schools, unpotholed roads and a bobby on the street?

You and i and others have to pay for it. I remember when I was paying 33% basic rate tax on my earnings AND purchase tax and car tax on my cars.

I also remember when at the merest hint of something it was all out!

So if you are paying £5000 in tax How much is the car? £30,000 for a Citroen. (worth £15000 the moment yo drive it out of the garage) Get a grip. there are better choices and second hand better choices elswhere.

Like most here I have worked all my life, paid taxes and lots of them at higher rate and still continue to pay now retired, and pay what is due, but temper my spending to avoid such things as new cars to avoid depreciation and vat.

Citroen C4 Grand Picasso - Buying our next car - Bromptonaut

You want Free healthcare, free schools, unpotholed roads and a bobby on the street?

You and i and others have to pay for it. I remember when I was paying 33% basic rate tax on my earnings AND purchase tax and car tax on my cars.

+1

Citroen C4 Grand Picasso - Buying our next car - Avant

I agree. If you really object to paying iniquitous rates of tax, logically you should decline to buy fuel for your car.

VAT, which seems such an unpleasant surprise to you, is nothing new: it was introduced in 1973 and even then was a replacement for purchase tax.

Citroen C4 Grand Picasso - Buying our next car - Discbrake03

I agree. If you really object to paying iniquitous rates of tax, logically you should decline to buy fuel for your car.

VAT, which seems such an unpleasant surprise to you, is nothing new: it was introduced in 1973 and even then was a replacement for purchase tax.

And your point is? Some of you have gone completely off on a tangent here. For the record, JUST LIKE YOU I pay my Council tax. So yes, that pays for bobbies on the streets (on the rare occasion we ever see one), and again JUST LIKE YOU, I have worked since I was 16, I'm now nearly 70.Never claimed a bean in benefits even through some extremely tough times. I've had my own businesses, paid ALL my taxes (no offshore hidey holes) and given back to the 'system' as much as I have put in. So PLEASE be fair. Or are there trolls at work.......

The question was, quite simply, Is there a way of buying a new car without incurring so much VAT. THAT was all I wanted to know.

Seems like nobody apart from the first two responders, thanks, has anything constructive to say. So I'll go somewhere else to get some relevant information.

Thanks.

Citroen C4 Grand Picasso - Buying our next car - Auristocrat

The simple answer is, of course, no.

VAT is payable on new cars at the standard rate, so the only way to reduce it is to pay less. The same applies to any new product where VAT is applicable.

The first registration fee (currently £55) is also payable on new cars, and again there is no way to reduce this.

Why not consider a pre-registered car.

Edited by Auristocrat on 16/05/2016 at 11:36

Citroen C4 Grand Picasso - Buying our next car - gordonbennet

I think its the 20% rate, a simple calculation for anyone, that has made some think.

I'm not in the paying as much tax as possible is good camp, i'm with our PM here who's dad was far more sensible even if his son is a trifle hypocritical when he singles out others who've done the sensible thing, in avoiding paying any more than absolutely necessary.

Yes i want coppers on the beat (not a hope) upholding British equal law and a National NHS, what i don't want to pay for is the billions wasted on middle east regime change confilicts and billions in so called foreign aid, nor on the vast sums we send every day to the EU to waste on layer upon layer of presidents and thousands of apparatchiks and hangers on milking the gravy train with their overinflated and undertaxed incomes.

Citroen C4 Grand Picasso - Buying our next car - Brit_in_Germany

Yes there is a way. Buy for export and then drive it round non-EU countries for the next six months before re-importing it. Check with the tax man before hand if this still works.

Citroen C4 Grand Picasso - Buying our next car - oldroverboy.

Seems like nobody apart from the first two responders, thanks, has anything constructive to say. So I'll go somewhere else to get some relevant information.

Nobody was saying that you didn't pay your taxes, But That is how the system works. As Someone else said, If you want to pay less tax, spend less.. (it is VAT so it is 20% for everyone.) for the record I bought my last car (the Venga) as a demonstrator and saved £5000. of that £5000 then £800 was VAT.

If you are not a diplomat or buying for export those are the rules for all of us.

And just a minor point perhaps, as an opinion, why buy something of that price which will lose so much of its value instantly the moment it is registered.

I had a look on Auto trader and there are lots around at£10,000 off your new price and with low miles and long warranties.

And your final line I'll go elsewhere...


Edited by oldroverboy. on 16/05/2016 at 12:18

Citroen C4 Grand Picasso - Buying our next car - bathtub tom

OP states: "I'm now nearly 70.Never claimed a bean in benefits".

Presumably that includes a bus pass, free prescriptions and state pension they'd be entitled to?

Edited by bathtub tom on 16/05/2016 at 15:18

Citroen C4 Grand Picasso - Buying our next car - gordonbennet

Thats not benefits, thats part of the deal we all make by paying into the system for decades, now i'm getting free prescriptions its a kinda nice feeling to get something those who have never, or at best sporadically, paid in take for granted.

Was a bit of a shock when i went and got something from yon pharmacy to be told you don't need to pay, felt like a bit of swindler for a moment, then reality hit and realised i'm now an old codger.

Edited by gordonbennet on 16/05/2016 at 15:25

Citroen C4 Grand Picasso - Buying our next car - Paul Robinson

A couple of comments:

As you say - it's a private vehicle so the vat can't be claimed back, but some of the vat paid is reflected in the value of the vehicle going forward and part is effectively recovered in the proceeds when you come to sell the car.

Would you find it more acceptable if you lease hired a car and were only paying vat on your monthly payments?

Citroen C4 Grand Picasso - Buying our next car - SteVee

anyone planning to pay 30,000 pounds for a car can afford to pay one-sixth of that in VAT (the OP said 5K in VAT, so that's 25K for the car plus 20percent or one-fifth = 30K list).

I'm sure you can get a discount of 16.66 percent on a 30K Citroen C4 Grand Picasso - that's up at the luxury end of that model range. That's effectively zero VAT. They're still going to be paying eye-watering amounts of money in depreciation.

It's the poor families that can't afford new cars (let alone luxury new cars) that I feel sorry for. They need the tax benefits of the diesels for their families and then get clobbered by the huge maintenence bills. I honestly don't know how they do it. We can all moan about the tax we pay, but I have no sympathy for anyone planning to load up an ordinary family car to that degree.

Many other countries have far larger taxes on new vehicles.