Vw Discount Formula

[Lukavell]

Anybody know it? I getting a quote of £34974 which is supposed be 10% off after the VAT is removed. A perk of my employment!

By my calculations that is about £1500 too much.

My working out is as follows:

Total OTR price = £46,635

£46,635 × 0.8 = £37,308 (Minus VAT)
37,308 × 0.9 = £33,572.2 (Minus 10% discount)

I know it's still a good discount but it just doesn't add up. I've asked the dealer and he's assured me its correct so either I'm missing something or he's lying!

The other thing is that this is my secondary spec, my preferred option is £53,985 so the effect is going to be an even bigger margin.

 

[DaveBos]

Looking at the numbers, seems like he still thinks vat is 15%, you have a 25% discount, 15% and 10%

 

[mmi]

Anybody know it? I getting a quote of £34974 which is supposed be 10% off after the VAT is removed. A perk of my employment!

By my calculations that is about £1500 too much.

My working out is as follows:

Total OTR price = £46,635

£46,635 × 0.8 = £37,308 (Minus VAT)
37,308 × 0.9 = £33,572.2 (Minus 10% discount)

I know it's still a good discount but it just doesn't add up. I've asked the dealer and he's assured me its correct so either I'm missing something or he's lying!

The other thing is that this is my secondary spec, my preferred option is £53,985 so the effect is going to be a even bigger margin.

If your VAT is 20% then you should divide VAT_included_figure by 1.2 to get VAT "free" figure.
£46,635 / 1.20 = £ 38,862.50

 

[Pauly]

£46,635 - the vat is 38,862
-10% = £34,976 so i would say your dealer is correct

£53,985 through the same process is £40488

 

[Lukavell]

I see, makes sense. Thanks for clarifying fellas. I was hoping he was wrong but at least I understand what I did wrong! Every day is a school day.

 

[Lukavell]

Looking at the numbers, seems like he still thinks vat is 15%, you have a 25% discount, 15% and 10%

You're numbers are spot on. The total percentage discount is 25%. Which means I get a very good discount but VW get a bit more than they would with the average 12% discount too. I assume they take the 12% off the OTR price, then give the government their slice. Everyone's a winner and VW are not daft!