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Act now to avoid VAT rise, says AA

21st December 2010 Print

Early Christmas sales at major retailers brought on by the freezing weather coupled with the VAT rise on 4 January makes the pre-New Year period the perfect time to buy, according to AA Financial Services.

Pessimistic reports from many retailers coupled with the wintry weather suggest that retail sales are £110m a day down compared with last year.  As a result there are some real bargains on the ‘High Street'.

Mark Huggins, director of AA Financial Services, believes that with careful planning, many families could be the real winners in the battle to lure customers into stores.

"The credit card market also has some top offers that can help buyers through the Christmas period and help to cope with the January 2.5% VAT rise pain.  For example the AA Credit Card not only offers 0% for 10 months on purchases (16.9% APR typical rate variable) but has a market-leading reward system - particularly for motoring purchases.

"Now might be a good time to invest in bigger purchases to avoid the VAT increase and take advantage of the 0% rate on purchases for 10 months from the date your account is opened, as well earn valuable reward points that can be put towards a wide range of products, vouchers and services."

The standard rate of VAT increases to 20% from 4 January.

The AA Credit Card earns one point for every £1 spent on motoring purchases (including fuel) and one point for every £2 spent on all other purchases.  AA members earn double that rate.

The AA Credit Card can be applied for online at