Look out for VAT busting deals as car dealers turn negatives into positives

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Believe it or not the effect of the VAT rise in January 2011 has actually left many car dealers feeling relived and excited. The fact that there is likely to be a last rush of buyers trying to beat the VAT increase will almost re-create the publicity that was around during the launch of scrappage.

Although there will no doubt be some trepidation around what will happen in the New Year, traditional buoyancy in the market will probably take care of that. Then it will be up to manufacturers and their franchised dealers to come up with some positive spin to promote their “VAT busting deals”.

There does appear to be some lethargy in the market at present which of course is also down to the World Cup and some lovely weather, not to mention Wimbledon.

Now June is over we fully expect the market to return to more traditional patterns which have not been seen in the crazy times of the last few months. We are still hearing stories regularly of buyers who bought in late 08 and early 09 who are trading their cars back in for the same or more money and we expect this effect to last at least another few months until guides completely re-adjust to changing market conditions.

Until then we advise anyone who bought any type of new or used car between the months of August 2008 and March 2009, and is looking to sell it or trade it in, to ensure they do it relatively quickly so as to maximise the value.

Buying when the market was as low as it was back then, especially for premium 4wd cars, should still see a fantastic deal being achieved and the completion of the circle.

We may not see the unprecedented month on month rises seen over the last 18 months for many years to come, and remember no one, whatever they may be saying now, predicted it but thankfully many took advantage of it.