Found a nice car, but the tent is trying to get me to pay another 7% vat even though i am paying cash. Is that correct because i thought vat was only added when finance is involved.

VAT is only added on new car prices.

game of cheaters,

I used to buy and sell second hand cars, not any such VAT or any, just the agreed price and transfer the name, that's all,

If you're buying in your own name: There's no need to pay VAT for such purchases.

If you're buying in your company's name: VAT applies.

The vast majority of consumer products are subject to VAT. This also applies to used cars. Normally you just see the selling price which includes VAT. Of course VAT registered companies can claim the VAT back that they pay on any purchases.

You've got the cash,try shopping around.myself I wouldn't deal with people like that.

Found a nice car, but the tent is trying to get me to pay another 7% vat even though i am paying cash. Is that correct because i thought vat was only added when finance is involved.

just ask them to cover the VAT themselves, if not walk away and go to the next dealer

VAT can be charged on used cars as well! Most of the used cars comes from car auctions or finance repossessed, therefore they have to pay VAT, when they sale the car again. Also if the dealer has a registered company or limited partnership. The Vat will be charged on the finance monthly payments, but if someone buy cash, they have to pay the VAT as well. In this case the dealer will put the VAT on the top of the asking price.

It doesn't work the way like in Europe or US. There is usually no negotiation possible, because margin for car dealers are sometime very small, since most of the dealers have only cars in consignment for sale.

It mean, the finance company or the whole seller parking their cars at the dealership in consignment and when the dealer sell the car, they get a small commission on the sales and maybe some percentage on the new finance contract.

So everything is changed, since about 2 years ago.