Nissan to Cover UK VAT Increase

As all of Britain braces for Government’s higher rate of VAT, scheduled to come into effect from the beginning of next year, Japanese manufacturer Nissan says it is ready to cover the VAT difference to allow its customers not to loose any money while purchasing a new vehicle.

The current 15 percent VAT rate will be replaced from 2010 with an increased 17.5 one. For the carmaker, the VAT is calculated on the manufacturer’s recommended retail price at the time of delivery, meaning that even if you order a car right now, while the lower VAT is in effect, you will only get the car next year and you'll have to pay 2.5 percent more for it.

To avoid this, Nissan will cover the extra VAT (2.5 percent) for anyone who places orders for any of its cars by the end of the year and receive it by the end of March 2010.

“The transition from one VAT rate to another has the potential to leave car buyers paying more than they expect when they take delivery. To avoid any such problems with a new Nissan, we have decided to take the VAT increase out of the equation. Buyers can add this to the lengthy list of reasons for choosing a new Nissan in 2009.” Paul Willcox, Nissan UK managing director announced.

It is likely for other carmakers to follow Nissan's lead and announce similar moves for the end of the year, as this minor concession may make the difference in terms of units sold. Keep an eye out for the best offers.