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VAT and the Car Leasing Industry

VAT Changes in Car Leasing marketWe are posting this to let our subscribers and visitors know that the government still intends to put the VALUE ADDED TAX rate VAT back up to 17.5% as of the 1st of January 2010. This could cause massive disruption to January sales at a busy time of year for retailers and there is a strong case for the government to delay this increase till the end of January 2010.

The Car Leasing industry will also see a change when it comes to VAT, peoples monthly payments will rise slightly where as vehicles OTR prices will also increase.

To be honest this vat change causes more hassle than good, in the long term it costs everyone more. Businesses have to make costly changes to promotional campaigns etc, customers pay more and the government are the only people who benefit.

Please be aware and ask your dealer about VAT if you suspect your car may not be delivered before January 2010 as the price may go up!

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