At what point is VAT added to the sale of a van including a part exchange

[Predatorx247]

I am in the market to renew my business vehicle.
I am a sole trader (landscaper) not VAT registered so i am aware that unless i find a van that is to be sold without VAT (VAT paid by previous owner) then i will have to pay VAT. - unless somebody knows of a way around this?
However what i am unsure of is how the VAT it to be added to the sale price of the vehicle. I want to know that Im not going to get conned by a dealer and also what my actual budget is, based on the answer to my question.

Example 1:
Forecourt price £10,000+VAT.
VAT £2,000.
Total £12,000
Part exchange -£2,000 NO VAT
Total payable £10,000

Example 2:
Forecourt price £10,000+VAT
Part exchange -£2,000 NO VAT
Total £8,000
VAT £1,600
Total payable £9,600

Thanks in advance

[les35]

Example 1 is correct. VAT is added before the part exchange price is subtracted.