Tax Free Cars

Discussion in 'Sappers' started by plant_op_till_i_die, Nov 7, 2006.

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  1. Need some help fellow Spr's.

    I am off to germany in a month and i am debating aout cars. What i need to know is can u still make money out of a tax free car, if so, what make and type? And also, who would you recommend to use as the dealers. I have heard some horor stories and want to avoid dodgy dealers.

    Any help anyone can give me will be greatfully appreciated. Cheers lads
     
  2. Just arrived in Germany myself. I haven't looked at new cars in detail yet but there is still money to be made but you do need to be more careful what car you buy.

    I know that Griffin are doing good deals on Fords and Skodas at the moment and they are a good outfit as I used them last time I was here.

    Try getting hold of the Sixth Sense newspaper, thats still full of adverts.
     
  3. It is now hard to make money out of tax free cars, mainly because the price of cars in the UK has dropped considerably over the last few years: it used to be the most expensive in the EU, but is now one of the cheapest.

    If you buy a car with low depreciation (Merc, BMW) then you should be able to own the car for a year and then sell it in the UK for a small profit. This will mean that you have had a car free for a year (including fuel and crucially insurance). Not bad. If you want to make mega-bucks then you have to spend mega bucks in the first place.

    Buying the correct model is vital: if buying an executive car, then it must be automatic and fully loaded. Then you need to put minimum mileage on the car and put it in a safe garage. If you damage the car: you are screwed. If the maker discontinues the model or announces a face-lift (e.g. old BMW to new-shape BMW) then again, you are screwed.

    Will you make money on a Mondeo? Nope. They are bringing out a new shape, so all old shape ones will have a massive drop in price. Will you ever make money out of a Vectra? Never - hunks of junk with poor resale values. You may be lucky and make money on an Alfa Romeo (a friend made a lot of cash). It also depends on the discounts you can negotiate from the seller.

    Best source of info will be your mates in Germany: see what they have done and what problems/successes they have had.
     
  4. chimera

    chimera LE Moderator

    Agree with all of the above.

    Also check the rules on selling on direct with BFG (not your mates in the unit). HM Customs are really digging in on this perk, and I believe that you now have to own the car for 2 years. There are also tight restrictions on how often you can buy and sell - I think it is only one every 2 or 3 years.

    And don't try and beat the system - I know of a couple of Courts Martial of people that tried.
     
  5. I thought that you had to keep the car for a year before selling it on and if you sold it within that year you were not entitled to buy another one for a year from the time you had sold it, but as Chimera said the rules have changed and HM Customs are cracking down on it. You BFG clerk should be able to give you all the ins and outs at you unit.
     
  6. Don’t forget the most important factor – have you got the capital to buy cash up front? I have heard so many guys talk a great game about how much they made – looking at the “face-value” of the car while ignoring the interest that they pay over the life of a loan. If you do take a loan, make sure that you don’t assume your LOA will pay for it. Lots of sad faces (and cars being sold cheap) last year when LOA dropped and folks found they couldn’t make their repayments.

    Mitsubishi, particularly in JHQ, still offer a buy-back/trade-up deal. Not to everyone’s taste but good cars all the same.
     
  7. Mr_Fingerz

    Mr_Fingerz LE Book Reviewer

  8. These are quite popular in Germany I believe. You must have had a very speedy resolution of your Bassingbourn issues- Training Regiments are Websters anyway!
     

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  9. No you defo only have to have it for 1 year, if you sell it before, you and your spouse are banned from having bfg car for 5 years.
     
  10. THAT SHOULD BE A LAW IN ITSELF :D 8O :D 8O
     
  11. Very speedy, incident happened 2 weeks ago, i will e gone in 3 weeks. And yes, training regiments are websters :D