The upcoming autumn tax increase will have a significant impact on the car trade, as the value-added tax on cars will rise from 24% to 25.5% in September. This hike could result in an additional cost of hundreds of euros for most basic cars and even more for special cars. Despite this, delivery times for new cars have improved, with most manufacturers being able to predict delivery times accurately. Advance invoicing is also an option to lock in prices before the tax increase takes effect.
The general VAT increase will affect all new cars in the autumn, and it has already caused some buyers to hesitate when making a purchase due to potential price hikes. Additionally, punitive tariffs imposed by the EU on Chinese electric cars could further impact prices, adding another layer of uncertainty to the market.
Despite these challenges, major chains and brands have not yet announced how they plan to adjust their prices in response to the tax increase. Purchasing a car before the end of August can help avoid this increase altogether, something that is being heavily promoted by the automotive industry.
Used car prices are not as affected by the tax increase as dealerships only pay tax on their profit margin. However, prices may still fluctuate based on how the EU tariffs impact new car prices.
It’s important for consumers to consider not only the direct cost of purchasing a car but also how other factors such as taxes and tariffs could affect their decision-making process. The automotive industry is closely monitoring these developments and working hard to mitigate any negative impacts on buyers and sellers alike.
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