During the recent budget announcement Chancellor George Osbourne outlined a number of cost cutting measures and tax measures in a bid to pull Britain out this age of austerity.
Some of the announcements and implementations will directly affect people purchasing new cars and leasing as it will alter the type of finance agreement people enter into.
The standout impact will be the increase of VAT up to 20%, this could be a positive for car leasing as other restrictions being put in place will prevent people who buy vehicles from claiming back VAT on purchase prices.
The addition to the Writing Down Allowance will also play a big part in the leasing and purchasing business over the next few years. Previously vehicles with a C02 emission of less that 160g/km or less would receive a decrease of 20%, but under new regulations this is down to 18%.
The fuel duty will be kept at 1p but include an increase of 0.76p from January, by doing this the Government hope to stabilise fuel prices to prevent the yo-yoing prices we have had in previous years.
Mr Osbourne also confirmed other measures that will impact on the leasing industry including the new company car and van tax and increased Vehicle Exercise Duty (VED) charges based on weight and suspension type.
All of these measures will come into force in April 2011, Companies such as Leasebam will help you track down the car you need for the best price.
