8:46 am, July 7, 2008
WE’RE all only too aware of how difficult the market is at the moment.
But conditions could be eased if the Government clarified its tax position on motoring, says the RMI National Franchised Dealers Association.
Sales in June were, at 209,190, 6.1 per cent down on 2007.
Sue Robinson, Director of the NFDA, says the Government could ease this caution by clarifying just how it intends to tax motorists in the future. She believes that changes to the way that Vehicle Excise Duty is calculated, along with rising fuel costs and economic and environmental concerns, have led to a wait-and-see stance.
‘Confusion over VED changes due to come into force next year mean that it is more difficult to calculate how much motoring is going to cost. In combination with rising household costs, this means that many consumers will wait to see how the cost of motoring and the overall economy plays out over the next few months.’
‘Consumers still want to buy cars, but the current uncertainty is not conducive when thinking about making what is for many the second biggest purchase after buying a home.
‘Reductions in interest rates, efforts to stabilize fuel costs, and clarification over the future cost of motoring are all within the Government’s remit, and we urge them to look into these areas urgently.’
