'Don't take risks' to avoid VAT rise

Date: 11/1/2011

It is important that motorists do not take undue risks when it comes to used car deals in an effort to avoid the recent increase in VAT, one group has urged.

HPI, a firm which offers HPI checks to determine whether a second-hand vehicle is in fact stolen or has outstanding finance attached to it, has noted that the rise in VAT may encourage some consumers to consider buying from a private seller, rather than a dealership.

However, the company notes that it is important such people remain cautious to ensure that in order to avoid the VAT increase, they have not paid over the odds for an unsafe vehicle.

It suggests consumers browse a variety of classified advertisements in order to get an idea of the average price of the vehicle they want and to use a valuation service, in addition to being prepared to haggle if work needs carrying out to the car.

According to the group, one in three of the used cars it checks has some form of hidden history, such as being written off, stolen or still on finance and it is important buyers know all the facts before they commit to a purchase.

Nicola Johnson, Consumer Services Manager for HPI, said: "The VAT rise shouldn't stop you from buying used, if you're prepared to do some extra work before you go ahead and buy."

VAT increased from 17.5 per cent to 20 per cent on January 4th.

Posted by Mary Treen