The VAT increase will affect car dealers but if you’re lucky, there are many dealers that will be sticking to 17.5% for a short while. Now is the time to buy your car but remember to ask around as the official VAT increase was on the 4th January. Some car dealers are still advertising the fact that they are still charging 17.5% which is a bonus for many motorists.
In 2009, the government decreased the standard VAT rate to 15% to help the nation but then raised it back to 17.5% on the 1st January 2010. Fast forward to 2011 it has increased again by 2.5% to fight the economic downturn.
So what affect does this have on the price of cars? The increase in price will be around £375 for an average car that cost £15,000. There are a few reasons you need to quickly know
So what are the reasons to buy a car right now?
You need to order your car and have it delivered way before the VAT increase dates.
You will get very good discount prices for new cars directly from the supplying dealer.
With a strong second hand car market, you can be sure you’ll get a good part exchange price.
Considering the car scrap page scheme is still available in some authorities you’ll be able to trade in your car to turn into scrap metal and get up to £2000 off the price of the car.
Many of the manufacturers are intending to increase their prices with the new registration plates so you might as well get the latest ’59 registration plate’ and get a new car.
Are there other ways to beat the VAT increase?
What Car suggests to order the car so a tax point can be created so that it is liable to 17.5%. This will apply when even the full prices has not been paid. They posed as buyers and some dealers didn’t want to go along with it. Either they were not aware this was possible or just wanted to go along with the 20% increase.
In 2009, the government decreased the standard VAT rate to 15% to help the nation but then raised it back to 17.5% on the 1st January 2010. Fast forward to 2011 it has increased again by 2.5% to fight the economic downturn.
So what affect does this have on the price of cars? The increase in price will be around £375 for an average car that cost £15,000. There are a few reasons you need to quickly know
So what are the reasons to buy a car right now?
You need to order your car and have it delivered way before the VAT increase dates.
You will get very good discount prices for new cars directly from the supplying dealer.
With a strong second hand car market, you can be sure you’ll get a good part exchange price.
Considering the car scrap page scheme is still available in some authorities you’ll be able to trade in your car to turn into scrap metal and get up to £2000 off the price of the car.
Many of the manufacturers are intending to increase their prices with the new registration plates so you might as well get the latest ’59 registration plate’ and get a new car.
Are there other ways to beat the VAT increase?
What Car suggests to order the car so a tax point can be created so that it is liable to 17.5%. This will apply when even the full prices has not been paid. They posed as buyers and some dealers didn’t want to go along with it. Either they were not aware this was possible or just wanted to go along with the 20% increase.
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