Motoring Discussion > VAT increase. Miscellaneous
Thread Author: Old Navy Replies: 5
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New Wed 23 Jun 10 10:32 
 VAT increase. - Old Navy
Do you folk "in the trade" expect a surge in sales before, and a severe drop off after the VAT increase. Or will all be well in the world and it will all even out as cars have a designed in life and people like shiny new cars. My shiny new one is in my garage!
Last edited by: Old Navy on Wed 23 Jun 10 at 10:33
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New Wed 23 Jun 10 10:41 
 VAT increase. - Mapmaker
I'm not in the trade, but I think an extra £425 on a £20,000 car won't make much difference; to the extent that it does make a difference I think it will be with people bringing expenditure forward so that the cars will be bought in December rather than next spring.
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New Wed 23 Jun 10 11:55 
 VAT increase. - lancara
Increase is 4th Jan - so the first 3 days of 2011 will be busy
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New Wed 23 Jun 10 13:03 
 VAT increase. - Boxsterboy
Manufacturers already discount by offering to pay the VAT. I don't think and extra 2.5% will make much difference. Were spending patterns affected much when nuLab dropped it to 15% and then put it back to 17.5%? I doubt it.

But I must remember to buy the Veyron before the year is out - it will make quite a difference to the price!
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New Thu 24 Jun 10 12:10 
 VAT increase. - Chris S
Two years ago people ridiculed a 2.5% reduction in VAT saying it wouldn't make any difference in their purchasing power.

Now a 2.5% increase in VAT is going to drive them in to poverty!
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New Thu 24 Jun 10 12:20 
 VAT increase. - FotheringtonTomas
I am not in the trade. However, my thoughts are:

We've just seen a huge surge in new car sales due to the "scrappage scheme".
Costs are going to go up 2 1/2% at least - who will bear these?
- Manufacturers <- my guess will bear the brunt.
- sales
- buyers

It's not a simple 2 1/2% price increase - the recent budget is going to have many effects on income and cost of living, both percieved and real.

I think that the VAT increase may jead to a small sales blip - however, I don't think that the sales outlook is good.
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