Not exactly a trick of the trade, but given that a dealer buys the car direct from the factory at something like £2000 less than the pre VAT price, why should he buy in a nearly new secondhand car for more than this?
But I do agree that the "it loses 20% as soon as it is registered and turns a wheel" argument isn't as straight forward as it may at first seem. If the car cannot be ordered in a reasonable time, as was the case for trads. all those years ago, then the dealer would most certainly pay more than the cost price, knowing he could still make his profit, VAT or not. It all depends on the availability of the product in the end, and some Morgans are just too available. Although I speak as an owner, the business would undoubtedly see things differently, as they want to sell new cars, not maintain the values of secondhand ones.
