Special Report Cost of Motoring

Will you buy a new car in 2010?

With car prices continuing to rise, VAT set to go back up to 17.5 per cent and scrappage scheme ending in February, are you likely to buy a car in 2010?

We want to know if YOU will be looking to buy a new car next year

The cost of new cars has gone up in 2009 thanks to the likes of Ford, who have put up the price of its new cars for the fourth time this year, Toyota, who are planning to follow and a number of other manufacturers raising their prices back in October.

The cost of VAT is set to go up on 1 January 2010 from 15 per cent to 17.5 per cent adding up to £500 to the cost of a £20,000 car.

While scrappage has boosted new car sales, the scheme seems to be losing its appeal as sales are slowing. The scheme hasn't been helped with errors being made that overestimated the number of cars ordered so there is enough government and industry funding to see it through to its end date of 28 February 2010.

Another challenge facing new car buyers next year will be the introduction of the 'Showroom Tax', effectively the road tax cost for a new car in its first year. Under this new system - due to start in April 2010 - the more polluting models could be forced to pay up to £950 while low emission models won't have to pay anything in the first year.

With all this going on we want to know if YOU will be looking to buy a new car next year.

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Will YOU be buying a new car in 2010?

Post a comment and tell us what you think about this article.

Added: 12 January 2010 23:17

No, would only buy a daihatsu but due to pound/yen exchange rate you cant buy them in the uk at the moment. hanging on to the one we've got as long as the mrs doesn't write it off!

Dai Hatsu, swansea

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Added: 09 January 2010 16:22

I was considering a new car in 2010 but now there is no way they'll get their hands on my cash.

Fair enough a company needs to be profitable but unless they reduce prices and the government delays the introduction of a stupid showroom tax they'll find themselves in ALOT of trouble later in the year.

David, North West

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Added: 09 January 2010 12:43

No way . At the moment we are driving a 10 year old corsa with 130000 miles on the clock and it still goes like a good swiss watch .So unless something major happens to the car i shall be hanging in there.

MORGAN.G, SWANSEA

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See all 11 comments for this article

Added: 03 January 2010 08:24

To buy new family hatchback you need at least 17k. My salary was frozen last year but cost of living went significantly up. On top of that mad price tag is higher insurance, VED, dealers labour charges (my current car dealer raised hourly rate from £82 to $111 this year) and each time government bails out a bank price of petrol goes up. I can't simply afford new car. In my office 50 positions were outsourced to India- I doubt my colleagues will buy new car in 2010.

Alex, Reading

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Added: 02 January 2010 18:53

Since manufacturers are blaming the weakness of pound to euro for increasing the prices, they should consider moving production to UK. As far as I know most cars for Western Europe are made in Eastern Europe and most of those countries does not have Euro as their currency then for my dumb brain I cannot understand how will this make a difference. I looks like greedy manufactures need a reason to increase their profits. I think in general people should prefer going for cars built in Britain.

Em Kay, London

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Added: 01 January 2010 18:43

2010? No way! Mfrs reduced output & increased prices throughout 2009 in response to the recession, hence there are fewer new cars around, dealers are less willing to discount and late 2nd hand cars carry a premium. Weakness of the £ will see further above inflation price increases through 2010. Heavy tax increases on fuel, showroom tax & changes in VED will put further pressure on bigger cars. VAT may go up to 20% post April budget. Dealer margins will continue 2b squeezed = fewer discounts.

greyhairs, Chelmsford

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Added: 27 December 2009 10:58

The economy is still depressed with many people worried about their jobs so car dealers will have to live in the real world and be accommodating with their prices. If they want to sell new cars then the price will have to be right. When a buyer comes along with no part-exchange and cash, big discounts should be offered, then new car sales will recover.

Mark Davies, Swansea

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Added: 14 December 2009 16:23

I suspect that some of the savings associated with the scrappage scheme have been theoretical and that heavy discounting will continue for the forseeable future. The average punter is simply not going to buy a new car if the price is too high. The change in VAT makes very little difference. Car production is a significant part of the world economy and manufacturers will continue to make cars. There will thus be a surplus of new cars and that inevitably means lower prices.

Charlie, Cambridge

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Added: 03 December 2009 12:30

I agree with the first post in that the VAT increase is not hugely significant when deciding to buy a new car next year.

I predict a very very slow sales volume for dec/jan/feb and this will then lead to manufacturers having to offer very tempting discounts on new cars as the stock piles increase.

when this happens I will definately be buying a new car.

fraser, glasgow

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Added: 03 December 2009 12:26

With 2.5% increase anything with a 10k price tag will only increase by £120 from april as most cars will have £0 for road tax with emissions emitting less than 130g. However i think 2.5% will not play a big factor if your buying a car the real key is to get a better deal and low apr

Alex , Croydon

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Added: 03 December 2009 11:18

With the VAT going back to 17.5% and scrappage deal ending and greedy manufacturers like Ford, VW putting prices up by 15% compared to beginning of the year, I will not consider buying a new car in the new year. User cars are anytime a good buy. People should dicard buying new cars and manufacturers will automatically reduce their prices.

Em Kay, London

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