Are you looking to buy yourself a brand new car before the year ends? If yes, this is the time to do it for the dealerships are on a discount spree for you before the VAT rolls out. Read all the details here!
Dealerships across UAE are all set to unveil some of the most generous offers over the next three months before value-added tax (VAT) comes into play. The next three months could prove the most decisive fourth quarter for the UAE’s automotive sector, with carmakers and dealerships expecting a sales bonanza as buyers line up before VAT comes into effect in 2018.
With VAT coming into picture, the prices are surely going to go up for cars as there will be per cent VAT charged on the vehicle’s value, while that on pre-owned ones will be based only on the profit margin of the seller. It remains to be seen whether this will be calculated on the gross profit or the net.
Market sources are hopeful that this demand could even translate into a 15-20 per cent volume gain over Q4-16, as both individual buyers and fleet operators try to make use of the pre-VAT promotions.
“Dealerships will want to squeeze out as much sales as possible out of [the fourth quarter of 2017] rather than wait around to see what impact VAT will have on [first quarter of 2018],” said Ian Batey, general manager at Autodata M.E..
But what is worth jotting down is that the specific VAT-based giveaways need not be in addition to all of the existing incentives dealers have padded up, such as free insurance, extended warranties, longer service contracts and the like. There is only so much that dealerships will be willing to bundle up as offers.
So quickly zero down on your choice of vehicle and save the VAT.