The rise in VAT now confirmed for early 2011 will be a mixed blessing for the caravan market. On the one hand, I expect to see a rush on caravan purchases until the end of the year as buyers rush to beat the VAT rise. The October NEC show in particular will likely be busy and sales figures will look bouyant as the year end approaches.
The problem comes in January when buyers are likely to be very hard to come by. With an extra 2.5% onto the price of every new tourer, it suggests that things could be tough on the forecourt come spring. And the Manchester caravan show in the first weeks of January will likely be especially tough.