Car retailers are gearing up for a surge in sales of new vehicles as drivers seek to be among the first to own the new ‘60’ registration plate – and beat the impending rise in VAT next January.

Prestige car finance specialist Tim Marlow, who owns Bridford Financial Solutions of Ilkley, said the luxury end of the market was likely to see a further increase in sales when the new plate is launched tomorrow.

Despite the tough economic climate, Mr Marlow is on course to beat last year’s record total of £25m of funding to motor dealers for vehicles costing £25,000 and above. He said the launch of the latest models such as the Ferrari 458 and California would boost demand and he has already financed three of these cars.

Tim said: “Sales at the top end of the car market have continued to grow this year and we’ve played a major part in helping dealerships with more the £20m-plus.

“I expect this to increase further in the final three months of the year ahead of the 2.5 per cent VAT increase.”

Figures from the Finance & Leasing Association showed that almost 50 per cent of car buyers used forecourt finance for a new car, with the number of new cars bought on finance rising by 26 per cent in the first half of 2010.

Bridford provides dealers with a variety of products to help boost sales and offer more choice to customers through tailored financial packages..

John Tordoff, chief executive of Bradford-based JCT 600, which has more than 40 branches across the North, said he expected new car sales to be ahead of this time last year, even though the Government-backed scrap-page scheme had ended Clive Brook, who owns Clive Brook Volvo on Canal Road, urged people to order soon to beat the VAT rise as many models were built to order and could take up to three months to arrive.

“The firm had seen a big growth ind demand for four-wheel drive SUVs following this year’s harsh winter. Of the 300 cars delivered in 2010, 100 were SUVs.

Prices for used cars were slightly below last year but were being helped by a shortage of low mileage former demonstrator vehicles.

Mr Brook said: “It’s a strange marketplace at present but I expect we’ll see an accumulation of orders for new cars as the new registration number is a special one and the VAT increase is looming.

“There are also good discounts available on most models.”