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Suzuki UK promises VAT Deals

Suzuki UK has announced that they will be carrying on with the "Vat free offer" that they currently promote at least until the end of September. 

Vat offers are nothing new in fact a number of other manufactures should as Citroen and Skoda have all tried and tested this type of offer and had a huge success. Increased sales and better customer retention. After all 20 discount of the cost of a new car for £10,000 means that you would now only pay £8000 and £2,000 in todays climate is a lot of money for anyone to save.

This is a big step by the Suzuki as naturally although the scheme is promoted as VAT free in essence the manufacturer and dealership simply discount the cost of the car by 20 %.

There is no difference in the price you ultimately pay as ultimately the price you are paying is the cost of the new car less the vat but, this ensures that the government receives the correct amount of value added tax which we all know is applicable on the sale of any new car.

For example a £10,000 car less vat is £8,000.( don't forget that certain items will be non vatable such as road fund license this is for illustration purposes only)

Instead on the vat offer the cost of the car is reduced to £8,000 of which the government still receives their proportion of vat.

This comes as no surprise to industry insiders as it comes straight after a 20 % increase in registrations for the first 6 months of this year.

The offer is currently available on all models of the Suzuki

  • Alto,
  • Splash  
  • Swift (excludes the Sport).
This means that the Suzuki Alto SZ is still the lowest price new car on sale in the UK at the moment at a fantastic £5,995. 

As an extra effort to tempt us Suzuki have also agreed to extend their low rate financial personal contract purchase ( PCP ) packages. 

Don't forget that if you are buying a vehicle like this ( i.e. on a vat deal ) you may want to consider a form of vehicle replacement insurance instead of standard return to invoice.

This is because if the vat offer does not continue and your Suzuki is written off getting the purchase price back alone may not be enough for you to be able to buy the same level of vehicle again.Going back to our example you buy a Suzuki on the vat offer and pay £8,000. Two years later your car is written off and as you had return to invoice gap insurance you get all your purchase price back ( less road fund). The Vat deal is no longer on and t=cost of the new Suzuki is now £11,000.

This means that in order to buy the same level of vehicle again you would have to find an additional £3,000. With a form of vehicle replacement (with a claim limit big enough to perform) and your own car insurance you would receive the full £11,000.