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Thursday
Nov252010

Experts Urge People to Think Twice Before Trying to Beat VAT Increase on Cars

The VAT Trap – that is what some experts on cars are calling the situation we are now in. The rate of VAT goes up from 17.5% to 20% in January, and this is forcing many people to start thinking about buying another car now.

But according to some experts this isn’t necessarily the best move to make. According to those who deal in the motor industry, the saving will be a good thing if you were genuinely thinking of changing your car now. But the message is that you shouldn’t be fooled into doing it if you had no intention of doing so previously. When you consider the difference amounts to just 2.5%, you can see where their logic lies.

There is another point I think is worth bearing in mind too. Lots of car manufacturers that are selling brand new cars sometimes offer zero VAT on them anyway. So if you buy one of these deals you won’t have to worry about VAT at all.

I can understand why some sellers would play on the increase in VAT to try and drum up more sales. It makes perfect financial sense for them – but it may not make financial sense for you. This is what the experts are trying to get at. The idea is to ensure you get the best deal at the best time, and if now isn’t the best time for you, you should wait.

St Matthew deals with many VAT related enquiries from businesses of all kinds every single day. If you have an issue in this area, contact us now for expert advice.

 



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