VAT reduction - the car industry is booming again
One topic that you can't get around this summer: the VAT reduction! Since the first of July, the VAT rate is reduced from 19 percent to 16 percent until the end of 2020, in order to boost consumption and the economy during the Corona pandemic. And how that works! The car industry is booming again.
A study by our client carwow shows that the reduction in VAT is currently the main reason for buying a car. It's hard to believe, but the three percent already have a significant effect on the purchase price. If, for example, the premiums for electric cars are added, the buyer can save quite a bit. However, this only applies from a purchase price of up to 35.00€.
And as chance would have it, the second most common reason for buying a car was still the e-premium. Closely followed in third place were changes in demand, such as family growth.
Demand in the car industry has been rising since June, and with the adoption of the economic stimulus package, people can now finally make a move.