Consumers 'will buy cars before VAT increase'

Posted by Emily Jones

There will be a boost in the sale of cars as Britons seek to make their purchases before the increase in VAT comes in, it has been suggested.

According to market research firm GfK NOP, people may bring forward their intended date for getting a new vehicle so they can beat the tax rise.

The firm suggested that premium dealers may be particularly affected by the trend, as middle to high-earners will feel especially motivated to buy cars.

Mark Durham from GfK NOP commented: "Car dealers need to act now to capitalise on this interest, boosting their marketing spend and offering incentives to entice buyers to their dealership."

He added that the VAT rise will provide short-term relief for the industry.

The expert went on to state that firms will have to find new ways to ensure sales do not dip after January next year, which is when the levy will go up.

Increasing VAT was one of a number of measures announced in the recent emergency Budget by chancellor George Osborne.
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30/06/2010 14:53

News category: Motoring

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