Business Fuel Cards News Motoring Updates: VAT rise ‘won’t affect car buying behaviour’

A new poll by car supermarket Motorpoint has suggested that two-thirds of motorists won’t bring forward the purchase of their next car because of the forthcoming 2.5 per cent VAT rise announced in the Emergency Budget.

The rise, which will take effect in January 2011, will take current VAT from 17.5 per cent to 20 per cent.

Some 67 per cent of the 1,200 respondents taking part in the Motorpoint survey said the rise will not affect their car buying behaviour. 

At the end of June, Motorpoint announced it would become the first car supermarket to not pass on the VAT increase to its customers.

David Shelton, Managing Director of Motorpoint, said: “It is clear that suggestions of a sales surge in the wake of the new Government’s Emergency Budget were a little premature, particularly when car supermarkets such as Motorpoint are set to absorb the extra cost.”

In other news, The Fuelcard Company has warned that the effects of future rises in fuel duty on hauliers will lead to rises in the price of essential goods and groceries and a growing scarcity of fresh food.

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