Military and Diplomatic Tax Free Used Cars

It’s not often considered as an option but there is the opportunity for the military and diplomatic personnel to buy a tax free used car.

Total Auto sell to all kind of possible buyers and whilst our biggest market is the ex-pat and second home owner looking for a new or used left hand drive car we also sell a lot to military and diplomatic personnel across the world. Most of these clients enjoy the benefit of being able to buy a car tax free and keep it tax free as part of their remuneration package. This includes staff posted to embassies across the globe as well as military including NATO personnel based in the UK whom are deemed visiting forces.

However, just because you are able to buy a car tax free it doesn’t necessarily mean that a new left hand drive car or indeed right hand drive car is desirable both in terms of budget and philosophy. Many people consider new cars to lose to much money initially and although it’s not quite on the level of 50% it can be a big hit. Equally the price and already forgone depreciation of a used car can mean that a vehicle becomes accessible and within your budget.

But are used car tax deductible? Well yes and no is the answer to that. Many used cars aren’t and are deemed “margin cars” which refers to VAT regulations for second hand goods. In these instances the car has been owned by a non-VAT Registered entity. However, cars that were owned by VAT registered businesses including dealers, businesses, leasing and rental companies invariably are and this can potentially offer the buyer the opportunity to buy it tax free assuming the supplier is willing to offer the car with a tax free sale…. which of course is part of what Total Auto Cars do!

Now with European prices being what they are this can sometimes still look unattractive and a combination of local market prices, pre-paid and un-reclaimable registration taxes and dealer margin expectation it doesn’t always work but with our tried and tested supply chain we are able to pick up on correctly priced deals that offer a price that meets the cheap UK RHD pricing structures less the VAT and discount. Of particular interest and of course availability is late plate 6-12 month old stock which offers the buyer a nearly new LHD car with the benefit of barely having been driven, a strong balance of manufacturer warranty and a justifiable new cosmetic and mechanical condition. Not only that but the pricing means you can save even more than a car that is new and only 6 to 12 months younger.

The only consideration is finding the right car and having the colours and specification available. Equally when we look at pricing on this basis invariably it is for cars that are physically on the ground now. A few months, weeks or even days that stock may not be there any more so when looking at used tax free cars consider the time period you are working too as well but always feel free to get a feel for what one might cost even if you are not thinking of buying for a few months.