Dealerships 'may have to increase prices'
All retailers - from Mazda to Mini car dealerships - may be forced to put their prices up further in the coming months, it has been suggested.What Car? magazine said recent times have seen the cost of buying new and used autos rise, but warned there may be more increases to come.
It explained a planned VAT hike is likely to result in prices going up at least 2.5 per cent.
This comes after used model values have increased by 30 per cent in the space of a year and the cost of buying a new vehicle has grown by some 9.5 per cent since the beginning of 2009.
What Car? editor Steve Fowler said extra funding for the cash for bangers initiative could assist in counteracting the rises.
"Extending the scheme is likely to cost the government next to nothing, will help to boost the UK economy and speed our exit from recession," he stated.
Meanwhile, the publication recently crowned the S40 DRIVe from Volvo its Green Car of the Year.
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