Reply To: Questions about VAT exemption on new vehicle purchases.

#337468
BigDave
Participant

    @glos-guy What did you order?

    Morning @BigDave It was an agonising decision but, in the end, I decided that you’re only young once (and I’ve missed that!), you’re also a long time dead and for once I’m going to let my heart rule, rather than my head, so I’ve ordered the X5 M60i In fairness, there was a degree of financial sense in it as well, as there are bigger discounts to be had on the M60i plus, of course, bigger VAT and VED savings, so it’s actually only costing me £3.5k more than the 40d (versus an rrp difference of £14.5k) and I should get the vast majority of that difference back come resale. Annual insurance is surprisingly only £88 more than the 40d (£658 v £570), but the biggest negative cost difference is naturally fuel. You obviously don’t buy a 4.4 litre twin-turbo V8 for its fuel economy , but it will only cost me around £100 a month more to run than the diesel, which is a premium I can more than live with given the big differences between the two cars. As a friend said to me, we are at a stage in life where ‘smiles per mile’ is more important than miles per gallon! Your advice along the way has been much appreciated and has helped shape what I am adding to the car. The M60i comes as standard with some of the options that I would have been adding to the 40d (e.g. Harman/kardon & Sun Protection Glass) but I’m adding Air Suspension, Technology Package, Comfort Seats, Acoustic Glass and 22” alloys. I wouldn’t have wanted wheels that big, but Mrs Glos Guy insists that black wheels look best with the red brake calipers and the exterior colour that she has chosen, and I have to admit she is right . I’m taking out a relatively inexpensive tyre and alloy wheel insurance though! I’ve managed to negotiate the 5 year servicing package down to £1,100 (oddly, the M60i servicing package is £1,640 inc VAT even though it needs more servicing than the 40d, the same pack for which costs £200 more?). The service pack is transferable to a new owner, so will further help resale value if I decide to change after say 3 years (when we can next get another new car with VAT exemption). The one thing that I’m still mulling over is that I can extend the warranty from 3 to 5 years for £1,399 but it’s not transferable to a new owner (unless it’s a family member, which it wouldn’t be). It’s a very good price as, oddly, there are only 3 price brackets for these extended warranties and all 4×4 vehicles are the same price – so I can get the M60i covered for 5 years for the same price as a 1.5 litre X1! You have to buy it within 14 days of buying the new car though, and if you leave it until the end of the 3 year manufacturers warranty the BMW extended warranty is about £1,860 per year! Given what you told me about your Air Suspension on your X6, if I keep the car beyond 3 years it will be a bargain but, if I don’t, I will have lost the money.  Incidentally, following what you told me about your air suspension, I went to a nearby BMW specialist and asked how often they get cars in with air suspension issues and what they charge. They said that the majority of failures occur after around 10 years and the damage is often caused by stones or debris being thrown up and puncturing the bags, hence why there are more failures on the near side. I’m guessing that you living on a farm doesn’t help in that respect! They also said that sometimes they have to change another component which also gets damaged when the air suspension fails (can’t remember what it was) and, if so, it becomes a £1,200 to £1,500 job, which was a lot less than I expected (although no doubt at a BMW dealer it’s probably about £5k)!

    Well, that should put a smile on your face when you collect it.

    Re the air suspension, on my former X6 it was initially the control unit that was faulty. Followed by 2 x replacements, then the cushions and other bits. Apparantly something to do with certain components being manufactured in the Ukraine which the war rather upset (skilled component builders being called to the front lines etc). However they do seem to have got on top of this  and probably changed origin of supply.

    That aside, I am sure you will have great fun with it.

    Am expecting my new X6 circa April time but am not really in any rush as am just as happy trucking around in the Grenadier, particularly if like this morning with the ice and snow up here.