If youve been hibernating for the past six months, you may have missed the governments VAT increase from 17.5% to 20.0%. The new rate came into play from the 4th of January 2011, which might explain the sudden rush at electrical stores on Boxing Day. Retailers are doing offers to help ease the new VAT rate in; some have frozen their prices by not passing on the new rate to their customers while others are paying the VAT on behalf of the consumer.

Honda, the Japanese car manufacturer is doing a few of these offers; it has decided not to pass on the VAT to increase to its customers throughout the whole of January. On top of that Honda is also offering three years free servicing and flexible finance options on some new models

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, these offers have been designed to help customers into a new Honda in 2011.

Honda customers buying their new cars from a Honda dealer in Kent will benefit from a three year free servicing plan on all CR-V models and Honda Insight and Honda CR-Z hybrids. Hondas are renowned for their bullet proof build and reliability but, with this free servicing offer along with the standard warranty

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, new Honda owners can have stress free motoring for three years.

To help its customers afford a new car Honda is also offering flexible finance options

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, there are a few packages with different APR rates depending on the amount of deposit paid, for example if you put down a 25% deposit then you are eligible for a 5.9% APR rate and if you can afford to put down 35% deposit then you can have a 0% APR rate on a two year PCP plan.

Martin Moll, Head of Marketing for Honda (UK) said, "Our New Year's resolution was to keep helping our customers drive down the cost of new car ownership and three years free servicing combined with a selection of finance options is a great start.

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