VAT back up to 17.5% & Manufacturers increase prices

Fleet Elite are here to help!

What you need to know:
VAT is due to revert back to 17.5% in January 2010. It was announced in the pre-budget report of November 2008 that VAT would be reduced to 15% until the end of 2009. Since we haven’t heard otherwise, we have to assume that this is the case.

All car prices will increase by 2.5% when the VAT rate returns to 17.5%

Due to the weakness of Sterling against the Euro manufacturers have increased prices throughout 2009, with further increases being announced recently.

Audi, Ford, Toyota, Honda, Citroen, Peugeot and Mercedes have already announced price increases for December 2009 and January 2010. More likely to follow.

How Fleet Elite can help:

Order and take delivery before the 31st December 2009 to avoid the VAT increase.
Order before 30th November 2009 for delivery in 2010 – some manufacturers are waiving the 2.5% increase, and we know who they are!
Contract Hire: Business & Personal leasing
You will not be affected by the 2.5% increase on the car price as rentals are calculated before VAT.
Your monthly rentals will be affected by the VAT increase as your monthly rentals will include VAT at 17.5%.
Remember: Claim 50% of the VAT back on your monthly rentals if your vehicle is used for business. Claim 100% of the VAT back on your maintenance contract if you have one.
Save money by choosing a car with a CO2 figure less than 160g/km. Rentals will be cheaper as these “green” cars are more tax efficient for the leasing companies who pass on their savings by reducing rentals.

Fleet Elite can help and guide you through all these matters. We want to reduce the impact of these price increases and make sure you get the most competitive deal. We deal with all the major manufacturers, dealers and all the principle leasing companies across the UK. When we receive an enquiry we approach each one of these contacts to ensure we find you the most competitive and suitable deal. We call this “Competitive Tendering”. This principle is used for every enquiry; regardless of whether it is for 1 or 100 cars!

Fleet Elite will save you time and money!