UK Car Industry Needs a VAT Amnesty

Published Date: 24th Sep 2009

As demand outstrips supply, UK Car Discount are hoping a VAT amnesty in the New Year will help customers buy sooner rather than later to avoid extra costs and keep an economic recovery on track

UK Car Discount, the UK's leading online car dealership have seen record deliveries of new cars for the month of September 2009. The dramatic rise, over nearly 100% can be attributed to a number of factors.

Andrew Saunders, Sales Director of UK Car Discount noted, "Sales have been very impressive during the last month and we believe that this is as a result of the scrappage scheme that has largely rejuvenated the new car market. The one thing against us, and every other new car dealer, is that car manufacturers reduced their output at the start of year in response to the economic climate. The scrappage scheme certainly helped drive demand; we just need car production to move up a gear to meet the demand that is appearing."

On top of the scrappage scheme, the reduced VAT rate has made a positive difference on the sales of new cars on line from UK Car Discount. This has helped fuel demand more recently, with longer delivery times for certain new factory ordered cars meaning that customers are trying to buy a new car for delivery before the January 1 deadline.

"On day-to-day purchases, the reduction in VAT wasn't really noticeable", said Gary Bennett, MD of UK Car Discount, "But when customers are spending in excess of twenty thousand on a new car, that adds up to a significant saving."

With the VAT rate returning back to 17.5% in the New Year, there are some concerns that demand will still outstrip supply in the new car market until the New Year at least.

"We're keeping our fingers crossed that a VAT amnesty is introduced for certain markets", added Mr Bennett, "But we're still urging customers to seize the initiative and order sooner rather than later to avoid any potential disappointment."

One of the better selling new cars online is the Nissan Qashqai, which can retail for £12,674 at the moment. Once the VAT level is returned to 17.5%, customers will have an extra £317 to pay.

UK Car Discount are hoping that pressure is applied on the Government to reduce the impact of the recession on some of the sectors that have been hit hardest during 2009, of which the UK Car industry was most definitely one.

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About UK Car Discount:

UK Car Discount has been trading online since 2002 and sold over £50M worth of vehicles. They are based in offices at Manchester Airport and sell only UK dealer supplied vehicles and have the full manufacturers UK warranty and standard breakdown package. To find out more about UK Car discount, visit

For further information, please call UK Car Discount on 0845 170 7770