In the end there were very few changes in the Pre-Budget Report that will have a major affect on what you pay when it comes to your car.
The main issue for car buyers was whether there would be further rises in fuel duty and how much VAT would increase by, find out all the information that could affect you.
The Chancellor begins his speech with promises of promoting growth in low carbon technology. Could this mean a bigger push in the funding and the backing of electric vehicles?
MAJOR ANOUNCEMENT
VAT is set to increase back to 17.5 per cent on January 1 as planned. There will be no delayed increase nor will it go up to 20 per cent as some had expected. Going back to 17.5 per cent will add an extra £500 on top of a £20,000 car.
Prices have been going up all year from manufacturers and this will add more to these price hikes. Will this put you off buying a new car in 2010? Let us know.
ANNOUNCEMENT
Some good news for company car drivers, although it will only benefit a few. Companies using electric cars will be rewarded by paying no company car tax for five years. This tax exemption of electric cars will begin in 2010.
No word on the scrappage scheme. Looks like the incentive will not be extended anymore. It will run until the £400m runs out or the February 2010 cut-off date. This is despite the fact that there could be money left after February with scrappage sales slowing and errors in the calculation of cars sold in with the plans.
How new car sales will cope once this discount has not been discussed with no further help for new car buyers or manufacturers announced.
No announcement on fuel duty. It will then go up in April 2010 with the 1p increase that was announced in last year's Budget report. It will then rise by 1p per litre above inflation every April for the next four years as set-out in 2008.
This could see the price of fuel continue to rise with the current cost of diesel up to an average of 110.2 and petrol up to 108.9p.
Road tax will go ahead as set-out in the Pre-Budget Report in December 2008. This means owners of old cars will still avoid retrospective tax while others will see smaller rises in the price of tax.
The one-off first year tax charges will also come in to affect in 2010. This means buying a high polluting new car could mean buyers pay up to £950 while low polluting cars will pay nothing in the first year.
