Dealer Dealers promises

[Andyfr]

When you call up a dealer and say that you are interested in a used Kubota B2150 with FEL for between £6000 and £7000 including tax, and they tell you that one will be coming in easily in that price range. Why is it that when they do finally get it in it is £7500 plus VAT at 17.5%, total nearly £9000./w3tcompact/icons/mad.gif

If I had £9000 to spend I would have told them that, are they stupid./w3tcompact/icons/crazy.gif

Are all dealers like this or is it just the one I have been speaking to?

Andrew.

 

[Anonymous Poster]

Andrew,

Your value added tax system is unique over there... while we have basic sales tax... it's not as gouging as your VAT... {maybe max's out @ 8% depending on area purchased} or nothing extra if purchased as ag exempt.

The dealer is gonna tell you the low-ball price over the phone to get ya to come down... and it's kinda understood sales tax is always in addition to the price quoted... not included.

Maybe, it's cheaper to buy from U.S. and ship it home.../w3tcompact/icons/shocked.gif

 

[Andyfr]

John

I must admit I have thought about buying outside the UK, the downside is of course dealer support. Not too much of a problem buying new as the manufacturers warranty would cover anything, but with a used tractor a bit risky./w3tcompact/icons/crazy.gif

What really got me was that I had told the dealer I wasn't VAT registered so my budget of £6000 - £7000 would have to be inclusive of tax which he assured me it would be, then when I spoke to him the other day it had gone up. He did say that if it didn't sell they would possible put it out for hire and then sell at a later date.

To be honest with you I feel like trying to get one from down south. There is a lot more choice and the prices are much better. The problem with the area where I live is that it has a small population and you have to travel quite long distances - for the UK - to get a decent deal on anything. I usually end up buying mail order or waiting until we go south.

Andrew.

 

[Anonymous Poster]

Kubota B2150, Mfr. 1988-96,

Assuming your imported unit is the same as U.S,{you never mentioned 2wd, 4wd, hst...?}, here's some current examples in U.S.:

Average Dealer Lot U.S. Pricing- {w/o loader-add $1k-1.3k}
2wd- $5300-8000.
4wd- $6500-8700.
2wd/hst-$6600-8800.
4wd/hst-$8300-11,900.

I don't know what the current exchange rate is right now, but you may enjoy a trip to U.S., take in some sights, buy a nice Kubota Compact Tractor, ship it back to Great Britain, and still have $$$ lots left over?

Or you find a cherry Massey Ferguson 135 or 150 over there and deliver to me in the U.S. and I'll find a B2150 for you and have it waiting... /w3tcompact/icons/smile.gif

 

[MarkV]

Andy,

<font color=blue>"I had told the dealer I wasn't VAT registered" </font color=blue>

I know a bit about your VAT taxes but what does it mean to be VAT registered?

MarkV

 

[Andyfr]

John

The tractor is 4wd with hst and a FEL and has done 850 hours. It has ag tyres and has been owned by a contractor as it did have a backhoe which has been removed. I think the exchange rate is about 1.4 at the moment. It is probably a fair price but what annoyed me is that he knew what my budget was and led me to believe that the one he was getting in would easily be within it. Dealers eh?/w3tcompact/icons/crazy.gif

I did make a contact a few hundred miles away who isn't a franchised dealer but does deal with all brands of compacts. He let me have a go on a B2150 - unfortunately sold at the time - and was very helpful. I will probably get in touch with him again within the next few weeks...although I don't know whether to wait until after the winter. Would be useful for clearing the snow I suppose but the real work won't get done until the spring.

Andrew.

 

[Andyfr]

Mark

If a business is VAT registered then any paid can be claimed back from customs and excise. This goes for everything which is used in the pursuit of business. Then when products or services are provided then these have to have VAT added for their customers. It is like being tax collectors.

So if I had a business where I could use a tractor I could claim the VAT back and then any jobs I did with it would have VAT added and then that would be sent to customs and excise.

As I am not registered I would have to pay the VAT but when I came to sell it I couldn't charge it, so it makes a big difference to the price.

I hope this all makes sense to you, if it does then you are way ahead of most businesses over here./w3tcompact/icons/wink.gif

Andrew.

 

[MarkV]

Andrew,

Got it. Here a business can be tax exempt for sales tax. Some what like your system, just not as high of rate.

When my wife works UK trips she can get the VAT back once she leaves. Most of the time it is to much hassle for the amount. She has done it on some larger expense items.

Thanks, and don't give up, there is a tractor waiting for you out there.

MarkV