ORDER NEW CAR NOW TO BEAT VAT RISE

NEW car buyers are being warned not to leave it too long before placing an order if they want to beat next year’s VAT rise.
A shortage of new cars in the supply pipeline and a reduction in production capacity due the manufacturers reducing output to combat the recession means that even an order placed now might not be delivered before the January 4 deadline.
That is when VAT will rise from 17.5 to 20 per cent, adding £375 to an £18,000 car.
According to CAP, the used car sector analysts, the problem is not confined to the usual luxury and exotic car sectors, with many mainstream brands now reporting lead times of several months.
For example a Skoda Superb ordered today will not be delivered until mid-November. Some Volvo and Audi models will not be available until well into 2011. Volkswagen is seeing lead times of 12 to 14 weeks instead of the normal 5 to 6. Even the ubiquitous Ford Fiesta cannot now be supplied until mid-September.
While the VAT increase is already unavoidable for some, the situation is also causing headaches for dealers. They now face the challenge of negotiating a part-exchange value today with the new car customer, not knowing what that car will be worth when the deal is finally concluded.
Mark Norman of CAP said: “Anyone with imminent plans to buy a new car needs to move now, especially if they have a specific model in mind because they may already find they cannot beat the VAT increase.
“This is not confined to the more prestigious end of the market but applies to many brands you would not normally associate with long lead times. The need to make enquiries early is particularly urgent if you want optional extras because they will be subject to special factory build, with little or no chance of a suitable car already being in stock.”