Buy a new car online prices now reflect the new VAT Rate

After what will be 13 months of VAT at 15%, the UK VAT rate will return to 17.5% on the 1st January 2010. The lower VAT rate was a temporary concession made by Alastair Darling to help the British Economy recover in the wake of the credit crunch.

This means that for all new cars delivered after January 1st 2010, our customers will unfortunately be invoiced for the car at 17.5% VAT. The net price of the car will remain the same but the amount of tax you pay will increase by 2.5% (see the example below). Unfortunately this increase in tax is applicable to cars being delivered in 2010, irrespective of when the car was ordered (as advised by HM Revenue and Customs).

As of the 4th of January 2010 all of our prices now reflect the new VAT rate of 17.5%. Depending on your chosen car the net increase will be anywhere between £266 on a Vauxhall Corsa to £600 on a Ford Mondeo.

Tags: VAT

This entry was posted on 13 January 2010 at 11:03 and is filed under Buy a New Car Online News | Industry News | Buying Advice | VAT. You can leave a response here.

Leave a Reply

• Sonnauto © 2008 - 2010
• XHTML
• Links
• Legal
• Terms & Conditions
• Privacy Policy
• Website Design Gloucestershire