Ford’s Kevin Griffin: tip for avoiding the VAT increase in 2011

Editor’s Blog: talking with Ford’s fleet director, Kevin Griffin

RECEIVED a useful tip from Ford’s affable fleet director, Kevin Griffin, last night.

Kevin and I were talking after a presentation of the new Ford Mondeo, with its 1350 changed components and new EcoBoost petrol engine.

And I was quizzing Kevin on a variety of subjects. The discussion moved towards the VAT increase from 17.5% to 20% next year and what impact this might have on the market.

“I think it’s bound to affect the big price items, simply because an additional 2.5% will represent a large price increase,” Kevin said.

“But generally speaking it will be absorbed. What we don’t know yet is how this additional cost will be sacrificed elsewhere.”

So what should you do if you are thinking of buying a business car in the short-term? And this is where Kevin has a useful tip.

“It doesn’t actually matter when you take delivery of the vehicle, it’s the invoice point that’s critical. So as long as the invoice has been raised and paid for, you’ll pay VAT at 17.5%,” said Kevin, before adding the key point: “But the car has to be available. As long as there is a car in our system, that’s fine. If you have to order it and the car has to be built and cannot be delivered until 2011, then that doesn’t qualify.”

A good piece of advice. So if you want to beat the rise, better get your skates on!