For VAT registered businesses the reaturn from 15% to 17.5% should not make any difference, considering they should be able to claim the vat back on monthly payments if the CO2 emmission of the car is low enough. But there may be a question on how the current price increase of cars in general 2.5% more, will effect the motor trade as a whole and the underlying residual values of the vehicle you may be wanting to lease.
Car lease prices are not seperated from the private buyer. In better words is there are plenty used cars to go around, then residual values drop and so monthly car lease premiums go up. If there is a shortage of used cars the opposite occurs. The availability of used cars is directly erlated to the sale of new ones and the amount of trade ins the dealerships get to dispose of.
In simple terms if the increase in VAT slows down new car sales again, it is likely that used prices will remain high or even rise further, pushing down car lease premiums.
For private lease searchers there may be no benefits, as private purchases have to pay full vat and so monthly premiums are set to rise. but business owners may get an even better deal on business lease should new sales slow down again. Of course the scrappage scheme has been extended so, this will stimulate new car sales, but we are finding it is the cheap korean cars that are benefitting the most form this, not the typical Audi, BMW executive market.
