Car buyers urged to beat the VAT man

Car dealers are aiming for a bumper end to the year by encouraging drivers to beat the January 1, 2010 rise in VAT.

The scrappage incentive scheme has already contributed to a rise in new car sales during the recession and now almost all manufacturers have launched special offers, tagged Beat the VAT man.

The aim is to lure buyers into showrooms before the VAT rate returns to 17.5% from 15% in the New Year.

Some motor manufacturers are linking their special deals to the scrappage scheme, which offers £2,000 off the price of a new car if a banger is traded in.

Adrian Rushmore, of Glass’s Guide, said: “It’s a buyers’ market right now because they have the whip hand.”

In the New Year apart from the rise in VAT, motor manufacturers are expected to introduce a round of new car price rises. As a result, Mr Rushmore is predicting that new car prices will rise by more than 6%. (The Sun: November 20).

Cowboy clampers face five years in jail

Five-year prison sentences will be brought in to stop cowboy clampers under legislation to be introduced as part of the Government’s new Crime and Security Bill.

The Bill was announced in this week’s Queen’s Speech and will result in the introduction of a compulsory licensing scheme for all wheel clamping businesses.

The long-expected legislation follows widespread complaints from the public about the ‘bully boy’ tactics of clampers.

The proposed new rules on wheel clampers were outlined in the House of Commons today (Friday, November 20) by Home Office Minister Alan Campbell.

Cowboy clampers could be jailed if they flout the strict new rules, which will also limit the size of penalties imposed by wheel clampers, regulate towing practices and put in place an effective and fair appeals process. (Daily Mail: November 20).

CBI chief calls for further extension of scrappage scheme

The leader of Britain’s biggest business group has urged the Government to extend the car scrappage scheme until the general election to help the recovery from recession and boost employment.

Richard Lambert, director general of the CBI, said the scrappage programme had been a big success and had helped support manufacturing jobs across the country.

The Government has extended the scheme, under which motorists receive a £2,000 discount for trading in cars over 10 years old, by £100 million to £400 million.

The cost is shared between the Government and the car industry, and analysts expect the money to run out early in the New Year.

However, Mr Lambert, speaking ahead of the CBI annual conference on Monday (November 23), said: “The scheme cannot go on forever, but the Government should think seriously about extending it until the general election.”

He said car manufacturers were concerned that the ending of the scheme, coupled with VAT returning to17.5% in the New Year, would hit sales just as the industry recovered from the economic downturn. (AM-Online: November 20).

Dealers losing £70,000 on ‘lost’ servicing

Dealerships stand to lose out on up to £70,000 a year due to servicing inefficiencies and customer dissatisfaction according to new research.

The results, based on data captured by Shell Lubricants’ Loyalty Driver performance management tool, found at least one in 10 customers were unsatisfied with the aftersales service they receive.

Failure to monitor and address customer concerns could result in dealerships losing up to £5,760 per month, and possibly more in the long run. The research revealed the top four aftersales customer gripes as being: Efficiency of service (47%), condition of the car (24.6%), value for money (17%) and helpfulness of staff (11.4%) (Motor Trader: November 20).