Best time to buy a car?

Red29

Hi

I desperately need a new car and I'm probably going to go for 2007 focus or astra, automatic, with less than 20,000 miles. Looking at main dealer sites it looks like I'll need to spend about £5k - £6k.

My question is will it make any difference if I buy in December or Janaury - will there be any difference in prices or could I get a better deal in Jan as I imagine not many people will be buying new cars then?

To avoid the VAT hike I'm thinking December is better but would appreciate any other views or advice. I'll be paying cash.

Cheers

bengalknights

Id recommend maybe holding out till April for the new registrations if possible to get the best deals.

In december you would get the slight VAT advantage, in January you would however have have more negotiating power as there will probably be less buyers around so less demand so id personally go for January between the 2 months.

Red29

Hi thanks.

I 'll try and see if I can hold out until Jan.

Don't think I'll be able to wait until April - but just in case can I just check - do the prices of used cars fall at new reg time? I'm wondering if I can wait, would a 2008 car be more in reach if prices fall in April.

harveybobbles

You could wait until April 2012 then you could afford a 2009 car. Or wait until 2013 to find the 2010 ones are cheaper...

There wont be much of a difference in prices on 2nd hand stuff regarding the VAT increase to be honest, buy uou may find a good selection of older cars cropping up before the VAT increase.

bengalknights

They do usually fall at new reg time due to companys upgrading fleet etc, an 08 plate would generally be around 30% less than a new reg car, you should be able to pick up an 08 reg astra/focus automatic with less than 20k on the clock within your quoted price range.

Red29

thanks very much for all your help

nancyo

I always find I get a better bargain at the end of the month, end of Dec they might be in the festive mood! Arnold Clark are giving a £300 voucher on their site just now.
I remember when the VAT went back up to 17.5% they were advising that it wouldnt affect car prices (who no's if it actually does)!!

VfM4meplse

Red29 wrote: »

To avoid the VAT hike I'm thinking December is better but would appreciate any other views or advice.

I was very surprsed to be told that VAT doesn't apply to second hand vehicles recently....at an official dealership, not by some dodgy used car salesman :rotfl::rotfl::rotfl:! How true is this?

Although I was quite surprised this makes sense in a way - for a private sale who declares VAT? (Yes I know most people aren't VAT registered).

jayme1

what?! VAT is only payable by the first consumer who buys any product, when you buy a new car the second you pay the money instantly you have lost the VAT as that was never part of the 'cost' of the car.

so basically it will not make a difference to the price of a used car after the VAT increase.

also it is (afaik) only convertable cars cost that are affected by weather (buy in winter not summer)

bengalknights

VAT is charged on used cars by either using the second hand margin scheme or by adding it on the total transaction cost as per HMRC

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&propertyType=document&id=HMCE_PROD1_030002

thelawnet

bengalknights wrote: »

VAT is charged on used cars by either using the second hand margin scheme or by adding it on the total transaction cost as per HMRC

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_ShowContent&propertyType=document&id=HMCE_PROD1_030002

But not on the full selling price.