Everybody dreams of the day they hold the winning lottery ticket out of millions and receive an amazing prize like a brand-new car. Once the celebrations have stopped, it is important to know what you must do next to cash in your ticket and receive your prize. Depending on which lottery you are playing, there will be different rules on the procedure after you realise you are the winner. Below we will go through everything you need to know about procedures after winning a car in the UK lottery.
Regardless of the type of prize, whether it’s a brand-new car or a sum of money, you must seek financial advice from a professional before making any decisions. This will prevent you from making poor choices and potentially jeopardising your newfound wealth.
You Won! What’s Next?
Congratulations, you won the car lottery. So what should you do next to receive your brand-new car? The first thing you need to do is contact whatever lottery you entered to win. This can vary depending on whatever lottery you initially entered to win a car. Some lotteries will contact the winner; however, for others, you may need to be the one to reach out and let them know that you have won. Doing this as soon as possible is important as some lotteries only give you a certain number of days to claim your prize.
When Do You Get Your Prize?
How quickly you get your brand-new car will depend on where you live. If you are someone who is currently living in the United Kingdom, then you will likely receive the car much quicker than someone who is based in Europe. Depending on the lottery you have entered, you may be subjected to fees for winning the new car. If you live in the United Kingdom, then some lotteries will pay the VAT and, in some cases, the insurance for the first year; however, this is not always the case, so it is important to check the terms and conditions.
For those living in Europe, the VAT may also be paid for; however, you will likely have to pay import tax to have the car sent overseas to you. There may be other fees that you will be subjected to, which means it is essential that you have a good understanding of what you might need to pay for and make some financial plans so that you can afford everything and receive the car.
Can You Get Cash Instead?
Whether or not you can swap the car you have won for a cash prize will depend entirely on the lottery you have entered. Many lotteries with cars as prizes also allow winners to receive a cash prize instead. Often, the cash prize will not be 100% of the value of the car you have won and instead will be a percentage of the value, for example, 80%.
Can You Remain Anonymous if You Win?
Although you may see the lottery winners in the UK in newspapers, it is your choice whether or not you want people to know. It is well understood that there can be some negative consequences of winning the lottery, such as unwanted mail, security issues and family feuds.
For this reason, it is entirely up to the winner whether or not they would like to go public and announce their big win. Many people prefer to keep their prize a secret and avoid unnecessary issues that could become additional stressors in their lives, making the win somewhat bitter.
What Taxes will you Have to Pay?
Winning a brand-new car is undoubtedly exciting, and you have every right to celebrate; however, it comes with some new responsibilities you cannot ignore. If this is your first time owning a car, you may be unaware that you must pay taxes when you possess a vehicle. It is essential to understand how much money you may be expected to pay for the car and how you can manage this expense.
Luckily, you will only have to start paying taxes on the car when you are the owner of the vehicle and not just went you are announced as the winner. This gives you plenty of time to get a plan together by speaking with a professional that knows how to handle things. One important thing to know is that the taxes you pay on your car will depend on the fair vehicle’s market value. The value of a car depreciates every year, so if you aren’t the owner of the car for a year or two after you initially won it, then you will have to pay less taxes.
If you have taken the time to read this because you have won a car in the lottery, congratulations! Celebrate being one of the lucky ones in the world to win the lottery and enjoy your brand-new car. Remember to follow some of the advice above to avoid unnecessary headaches that could sour your win.
