Hyundai makes select cars VAT free

Car manufacturer Hyundai has made selected models VAT free in the new year.

With the company paying 20% VAT rate, customers will save £1,410 on i10 city car's Comfort 1.2 5dr model which costs £7,109. The 120 supermini will cost £1,750 less for the Comfort 1.2 3dr model, at the price of £8,809.

And the i30 mid-sized family hatchback's Comfort 1.4 5dr model is now priced at £11,605, a saving of £2,285.

The scheme, which ends in March, is in addition to Hyundai's freeze on the VAT hike that follows similar moves by other retailers.

The new year package from Hyundai also offers a Personal Contract Purchase (PCP) plan. PCPs have an Annual Percentage Rate charged at 7.9% and monthly rates charged on 10, 000 miles per annum.

Tony Whitehorn, Hyundai Motor UK's managing director, said: "Hyundai begins 2011 by offering fantastic deals on a great range of products that are backed by our class leading five year unlimited mileage warranty. Making selected models VAT free as well as offering competitive PCP plans should make buying a new car more affordable."

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