MegaSack DRAW - This year's winner is user - rgwb
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My car has died a death, so I need to buy another one. I'd be looking for something about 4 years old, but I don't know whether it would be best to get one in December before the VAT increase, or wait til January when prices might drop a little. It might be buying from a private seller or a garage.
Any advice?
I'm tempted to say now - knowing car dealers they'd round up prices after the VAT increase, and the second hand car market has remained quite buoyant in the recession so prices have not fallen much recently, if at all.
Bought a new (to me) car last Jan.
I think you'd probably get a better deal in Nov/Dec as people are focussed on Christmas right now and not buying cars. After Chrimbo people start on their 'to do' list like get a new car.
They only charge vat on the margin, so I'd say you might get a bigger discount now as sales people try and reach their end of year targets I got a bargain in December a few years ago.
As ever, the last day of the month is usually regarded as the best day to buy from any dealer that employs salesmen
Now. VAT makes no difference to used cars as far as the punter is concerned. January is one of the busiest months in used cars so demand and therefore prices are strongest, Glass's guide actually goes up. Don't leave it 'til the last day of the month for the best deal though, 4-5 days is best as salesmen are targeted on cars delivered, not sold.
IIRC* VAT isn't chargeable on a used car that is "non-qualifying". I suspect most 4 year old cars will be classed as non-qualifying
* I used to work for a software house that did software for car dealers, but that was over 10 years ago and the rules may have changed
Prices are lowest during novemeber and december generally and then pick up again in the new year. As said above VAT is likely to have very little impact on second hand cars as it's only paid by the dealer on the margin.
The dealers I've known have all varied there sales target dates so as to not end up with lots of people waiting for the last week of the month to buy and try and get a better deal.
In terms of where to buy if you know anyone who's knowledgeable about cars then I'd be tempted to go private. If not then a trade sale will get you some kind of warranty but you could also purchase a car through a private sale and then buy yourself a warranty from someone like warrantydirect (who had a good rep last time I checked).
I wonder how many buyers will be looking to buy an 11 but avoiding the VAT increase - 2/3rd could be a busy weekend for dealers & that may put more PXs on the forecourt
uplink, how do you buy an '11' and avoid the VAT? 11 plate is not due 'til March. Anyone ordering new now for March is being quoted 20% VAT anyway.
I meant 11 as in a 2011 car
Ahh, I see 🙂