Car finance experts have told Motor Finance that
personal taxation changes in Wednesday’s Budget will minimally
impact retail.
The reduction in the top rate of income tax
from 50p to 45p for those earning over £150,000 will give more
spending power to the clientele of luxury vehicle specialist
Bridford. However, owner Tim Marlow said the high value of the cars
Bridford finances rendered the tax reduction “more likely to have a
bearing on the length of the terms agreed and enable more to
complete within three years instead of four, for example.”
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The raising of the personal allowance
threshold to £9,205 next year (currently £7,475, set to rise to
£8,105 next month) left non-prime lenders cautious, but hopeful
that more people could be tempted to buy a car.
Moneybarn managing director Peter Minter said
the change was “clearly a positive move for the majority of car
finance customers, and can only help make car ownership in the
non-prime market more affordable”. However he added that this would
be
offset by other rising costs of motoring.
Andrew Walton-Green, CEO of The Car Finance
Company was equally cool but welcoming of the potential of the
changes: “It’s a good thing for stimulating the economy. It will
alleviate the pressure on some who may feel they could upgrade
their car.”
On a
macroeconomic level, Neville Briggs, managing director at
dealer management systems provider Pinewood said the Budget would
not “substantially cheer or dismay dealers,” but did concede there
was “a slight uplift in mood” following the Chancellor’s
forecasts.
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By GlobalDataBriggs was particularly encouraged by
predictions for growth, inflation and employment which could “help
lighten the mood of consumers” which “may translate into marginally
better trading conditions.”
Further comment and analysis of the impact
of the budget will be published in
April’s issue of
Motor Finance
magazine.
richard.brown@vrlfinancialnews.com
