It was recently reported by the Society of Motor Manufacturers and Traders (SMMT) that new car registrations in November 2010 saw a decrease of 11.5 percent to under 140,000 cars being registered during the month throughout the country.
Whilst the new car registration market is actually running at a higher level than predicted for the entire year by 3.4 percent, with the cold weather in the run up to the Christmas period and the increase in the number of new cars registered in December 2010 may also see a fall year on year. If you put these two low sales months in to the context of the new plates coming in March 2011,
it’s for this reason why January is the perfect time for you to buy a new car. Dealers will have excess stock that they need to move, targets to meet and older models to get rid of.
According to Auto Trader, the top five cars in the UK for 2010 were the Audi A4, BMW 3 Series, Ford Focus, Vauxhall Astra and Volkswagen Golf and throughout the last 12 months the total cost of ownership laid between 20,647 pounds (Ford Focus) and 36,426 pounds (Volkswagen Golf).Looking at the research that Auto Trader carried out and their predictions for the coming year, the total cost of ownership for 2011 is at least an additional 440 pounds, but could be as much as 775 pounds.
Using the latter increased cost as an example, which was for the Volkswagen Golf, the increase of 775 pounds was split across four separate sections – 668 pounds extra for the actual cost of the car, 69 pounds more for petrol, a 29 pound increase in the average car insurance premium and 9 pounds extra for your annual car tax.
What can be difficult to understand is that these increased costs became effective in just a few days – if you were considering buying a Volkswagen Golf on 31 December, but put it off until after the weekend had passed you’d be paying almost an extra thousand pounds because of your deliberation.
There is a shining light for business users, however, if they decide to take advantage of a car finance package, in particular business contract hire, they can avoid the VAT hike. Whilst this might mean that they can’t escape the increased VAT in some respects, it does mean that if they use this car finance option, they shouldn’t see any particular difference in the monthly cost once the VAT increase has been put into place.
Mark Rourke is a specialist who researches the latest car finance deals.