We didn’t think it would be long before the VAT offers began to appear ahead of the rise from 17.5 per cent to 20 per cent from January 2011.
One of the first manufacturers to offer customers a VAT freeze over winter is Land Rover, which hopes to boost traditionally strong winter sales with a 17.5 per cent VAT rate.
The offer covers all of the Land Rover models, including the British-built Freelander 2, the best-selling Land Rover model in the UK.
The Range Rover, Range Rover Sport, Discovery and Defender will also be offered at 17.5 per cent VAT for all models ordered before 31 December.
This means all models delivered and registered between 4 January 2011 and 31 March 2011 will be available at the current price because both Land Rover and dealers will pay the cost of the VAT increase.
It is a clever move from Land Rover, whose rugged 4×4 SUVs are popular with UK buyers in the winter. As ice, rain and wind batters the UK over the winter, the likes of the Freelander 2 are easily the most capable and safest cars on the road at this time of year.
Last year, icy weather across the UK caused Land Rover sales to rise to such an extent it revitalised the company and led to several months of growth.
And it wasn’t just the manufacturer which benefitted, because the extra demand meant the company could employ 275 new people at the Solihull plant.
The plant builds the Defender, Discovery 4, Range Rover Sport and Range Rover, meaning buying a Land Rover won’t just save you cash and help you cope with the weather conditions, it will also be helping British workers and boosting the economy.
Although a 2.5 per cent rise doesn’t seem like a lot, on cars costing upwards of £20,000 it can add hundreds to the price, so the offer makes sense for Land Rover.
This means the 2011 Land Rover Defender starts from £21,000, the 2011 Freelander 2 from £22,000, the 2011 Discovery 4 from £33,500 and Range Rover prices start from £68,000.
We’re sure to see a few more VAT-specific offers over the coming months, but Land Rover is one of the first, and despite only being offered for a short time, it makes a lot of sense to freeze the prices.