Skoda Fabia 2 (2007 - ) - VAT free Skoda Fabia

Honest John Back Room » Motoring discussion
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Fri 20 Mar 2009 19:21
VAT free Skoda Fabia - DaveC
I have just been to my local Skoda dealer asking for a price on a new Fabia 3 Tiptronic.

He told me that the "VAT free" deal which Skoda are offering is made up of the dealer profit margin on the car and a donation from Skoda. Therefore he couldn't offer me any further discount and the price is basically the RRP of the car less VAT plus the OTR charge.

Does anybody know if this is actually true? Is part of the "VAT free" deal the dealer's profit margin?
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Fri 20 Mar 2009 19:32
VAT free Skoda Fabia - b308
I'd stick the question on the BRISKODA Forum, there's several dealers on there... would be interesting to see what they say!
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Fri 20 Mar 2009 19:33
VAT free Skoda Fabia - Optimist
"VAT free" is just a way of expressing the percentage discount on the car as opposed to its current list price, I'd have thought.

If the dealer invoice to you before VAT is £10000 then the price with VAT is £11500 currently. To take £1500 off the price it seems logical that the dealer will have to sacrifice his margin and Skoda will make up the rest. The reduced price of £10000 will still include VAT at 15%.

So (maybe naively) I'd have thought what you've been told is right on the individual car though the dealer may make up his margin elsewhere if he sells enough motors.
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Fri 20 Mar 2009 22:45
VAT free Skoda Fabia - Avant
It's just a way of offering a discount which Skoda - reasonably enough - hope will catch people's eyes. It's caught yours!
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Sat 21 Mar 2009 09:40
VAT free Skoda Fabia - b308
Isn't it what Citroen have been doing for years, this VAT discount thing?!
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