NEW VAT price would add almost £300 to the cost of a new R1. Insurance and fuel go up too.
THE BUDGET headline is VAT to rise to 20%. But how will bikers be affected?
New motorcycle buyers will be hardest hit. We spoke to Tony Head* at OnYerBike in Aylesbury. Their OTR price for a 2010 Yamaha YZF-R1 is £12,624 but assuming Yamaha don't change the price, the price with 20% VAT in place would be £12,893 adding £268 to the cost of a new R1.
The knock on effect of the VAT rise will be a rise in parts costs and therefore servicing costs too.
It's expected that fuel will rise by 3p per litre. Not the huge hike that was expected.
All insurance will see premiums rise, including motorcycle insurance after the chancellor announced increases to insurance premium tax (IPT).
At the moment when buying general insurance products we pay a 5% levy as part of the overall price. However, from 4th of January next year we will pay 6% tax. The increase will mean the average motorcycle insurance buyer will now be paying £18 a year in tax on a typical £300 premium.
*Tony is keen to stress they have one 2009 model cross-plane crank R1 in stock for just £10199 with free Akrapovic exhausts. You can call OnYerBike on 01296 655 999.
