In light of the shocking VAT rise from 17.5% to 20%, some manufacturers are providing VAT free deals on new cars, in order to get us into new showrooms (it’s only on new cars where the the dealers make any real money).
SEAT is offering 10% VAT rather than the full 20%, as well as 0% finance. This applies only to certain models though. However, pop into your dealership to see what kind of deal you can get.
Similarly, Subaru is freezing prices on some models, with 17.5% being the norm rather than the designated 2.5% increase as expected.
Subaru UK Marketing Director, Kenyon Neads, commented: “For the vast majority of our customers the decision not to pass on the VAT rise is great news, particularly anyone in the market for a Forester, Legacy, Outback or WRX STI Type UK.”
As usual, dealerships are hoping for a strong start to the new year, especially in light of dismal sales before Christmas of anything that wasn’t four wheel drive in nature. My top tip is to search around to see where you can make the most saving. Ultimately, it doesn’t matter if it’s VAT or the overall price that the dealership is reducing, so long as in the long run you can save yourself some cash. Be prepared to do a deal and do your homework before you set off – it’ll be worth a few quid!
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