VAT rose by 2.5 per cent on April 1, 2010, as confirmed in the 2009 pre-budget report, meaning a £ 250 rise on a new car which costs £ 10,000. Some manufacturers are offering deals to offset the VAT increase, saving you hundreds of pounds. These include:
Toyota Aygo
Price: £ 9,295
Save: £ 200
The Toyota Aygo is perfectly well-formed for the city. As well As getting a price cut to £ 200, it s designed to save you money in running costs. The 1-litre Aygo Blue costs £ 35 per year to tax and has a combined fuel economy of 61mpg.
Deal expires: March 31.
Ford
Save: Over £ 225
Ford is allowing buyers Adviser to avoid the 2.5 per cent VAT increase across its entire range. This gives savings of around £ 280 on its popular Fiesta and Focus the supermini hatchbacks.
Deal expires: March 1.
Mitsubishi
Save: Over £ 212
On top of a deal extending the 15 per cent VAT rate, Mitsubishi is also offering five years free servicing, four years 0 per cent finance, 3 years warranty and two years free road tax. This applies to its entire range except the L200, Shogun and Outlander commercial vehicles.
Deal expires: March 31.
Skoda Octavia
Price: £ 10,525
Save: £ 263
An affordable family hatchback based on the Volkswagen Golf, Skoda Octavia has the rain of space and comfort. Skoda has also extended VAT savings for the Fabia and Roomster.
Deal expires: January 31.
Vauxhall Corsa SRi
Price: £ 9,995
Save: £ 4,489
Vauxhall is offering a UN of scrappage-only offers, with £ 4,489 Vauxhall Corsa SRi off the warm supermini and £ 4,644 Vauxhall Astra Sport off the.
You ll need to have owned a nine-and-a-half-year-old car for at least one year to take advantage of the discount. For more information visit our scrappage scheme homepage.
Deal expires: February 28
Peugeot 207 Verve
Price: £ 10,805
Save: £ 1,790
The Peugeot 207 is a larger-than-usual supermini with a stylish exterior and rain of safety features, including six airbags and a Steering Stability Programme (SSP). The Verve also includes Bluetooth technology, air-conditioning, 15-inch alloy wheels and front lights fog overnight.
Deal expires: February 28.
Citroen
Save: £ 400
Citroen is offering a deal for servicing cars which cover less than 12,000 miles per year. For £ 200, drivers get scheduled and annual services for three years or 35,000 miles. This applies to the entire range apart from the Citroen C3, Xsara Picasso, First C8 and Combi.
Deal expires: March 31.
BMW 7 Series
Price: £ 58,740
Save: £ 5,000 in upgrades
The BMW 7 Series is available with free upgrades worth £ 5,000. The buyer can choose their options, from full Merino leather interior to rear-seat screens. BMW is also extending this offer to its entire range, most cars benefitting from a £ 1,000 upgrade.
Deal expires: March 31.
Audi A3 Technik
Price: £ 15,770
Save: £ 1,100
Audi claims the saving on the A3 Technik represents £ 1,100 of value over the standard or SE model. For £ 400 you get a Technik pack which includes 17-inch alloy wheels, a radio with MP3 compatibility and a Bose premium sound system, worth a total of £ 1,100.
Deal expires: January 31.
Honda Civic Type S
Price: £ 14,495
Save: £ 931
The 1.4-litre Honda Civic Type-S diesel combines sensational looks with superb fuel economy. It has a combined fuel economy of 47.9 mpg and emits 135g/km of CO2.
Deal expires: March 31.
Where to buy
Buyers adviser can search for a new car on Auto Trader, which has thousands of on sale at discounted prices. You can search for the exact spec and price range you want. Alternatively read our where to buy guide.
Looking for another car?
Don t be afraid to ask for extras these could more than cover the 2.5 per cent rise in VAT. We ve listed what the following could save you:
A tank of petrol £ 80
Sat-nav £ 1,000
Floor mats £ 60
Spec upgrade £ 200 to £ 2,000
Alloy wheels £ 800
Tax and insurance for the first year can be worth over £ 1,000
For more information, read our guide to getting the best possible deal.
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