Saturday, December 20, 2014

Tax-exempt cars, beware when you have to sell...

When my son returned to the country, he was allowed to buy two tax-exempt vehicles, a privilege that he happily exercised. He recently decided to replace one of them - BMW323i - with a SUV. The five-year-old salon was getting a little tight for his three boys.

Even though the original price tag for this vehicle was $270K, the highest offer received was no more than $90K. There is simply not much second-hand value for BMs!

What followed was even more shocking. We found that a buyer would have to pay Customs duty to get it transferred to his or her name. I checked with a friend who had done this before. He told me that he had to pay $20K for a10-year-old car under a similar situation. There is a website which appears to be able to help one estimate the damage. I tried it and just couldn't believe the amount my son might have to pay. With the vehicle loan that was still outstanding, he might end up netting nothing.
I decided to sell my one-year-old A Class Mercedes and took over his BM instead. I always condemn BMs but am using one now! How ironical!

No comments:

Post a Comment