News – Leading Mercedes contract hire specialists pass on VAT cut
City Vehicle Leasing the champions of low cost Mercedes-Benz and smart contract hire, today announced that they will be passing on the Government’s 2.5% cut in VAT in full, with immediate effect.
Whilst retailers do not legally have to pass the cost savings onto their customers City Vehicle Leasing are amongst the first retailers to do so, as the VAT cut comes into place in the UK today.
Speaking on behalf of the company, Rebecca Williams, Customer Service Manager said” ‘We work tirelessly with our suppliers to obtain Mercedes-Benz and smart cars at the lowest possible prices so our contract hire customers get the lowest possible car leasing rates in the UK.
‘We are aware that other retailers feel the cut is too small to be effective but the 2.5 percent cut in VAT has been welcomed at City Vehicle Leasing and enables us to trim our prices even further.’
‘Some retailers may feel that the change is both too small and too burdensome to implement, but with customers counting every penny in the run up to Christmas and more financial uncertainty in the New Year, we’re doing all we can to drive Mercedes-Benz and smart contract hire rates even lower.’
On a typical 2-year personal contract hire (PCH) agreement on a Mercedes-Benz E220 Avantgarde Saloon the pre-VAT cut payments would be £305.49 a month at City Vehicle Leasing.
With VAT cut to 15 per cent their monthly rate is now £299.99 – a saving of £5.50 a month or £132.00 over a two year contract.
Contract hire a Mercedes-Benz S320 CDi Automatic on a 3-year personal contract hire agreement from City Motor Holdings and you could save £12.87 a month or a mighty £463.32 over the duration of the agreement – the VAT cut reducing the monthly payments from £305.49 to £299.99.
If you are thinking about buying a smart car, the VAT cut makes contract hire an even more attractive option to outright purchase. City Vehicle Leasing have cut their rates for a Smart Coupe Pure 71bhp from £117 to £114 a month making a post VAT cut saving of £108 over three years.
For more information on Mercedes-Benz or smart personal contract hire call or for a post-VAT-cut contract hire quotation call City Vehicle Leasing on 0844 375 3263.
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