£450 Road tax on cars listed at over £40,000 when new

[Bonecho]

Road tax will be £450 for the first 5 years on cars with a list price of over £40,000.

Just wondering if that will affect the second hand price of MB's when people on a budget buy second hand?

 

[grober]

Budget 2015: new road fund and car tax overhaul announced | Auto Express

Got to tax all these hybrid owners somehow. Electric cars will be the only ones to escape.
Raising of tax by 50% on insurance premiums will put the cost of car insurance policies up also.

 

[davm666]

Hmm. We'll have to wait and see how manufacturers play this one. With inflation and if recent price rises are anything to go by £40k could only get you a mid range c class in 2017.

 

[Driver15]

All this will do is reduce the price of a 4 year old car which has come out of a lease by £450

 

[219]

One change might be to 'de-spec' cars back to a basic level , making things like electric windows , heated seats , alloy wheels and radios and other gadgets currently standard into optional extras again , thus reducing the 'list price' of the car and dropping it into a lower tax band . Reducing the spec , and kerbweight , would also reduce emissions at point of sale , thus further reducing the tax band .

Of course , a buyer can then add all the options on - once he has bought the 'basic' car .

 

[renault12ts]

Hmm. We'll have to wait and see how manufacturers play this one. With inflation and if recent price rises are anything to go by £40k could only get you a mid range c class in 2017.

Inflation?

 

[renault12ts]

VED will now be used for roads...in England.

 

[boxbrownie]

And then after the first year there is a standard flat rate for ANY vehicle of £140, am I reading that correctly?

If so...........roll on that V12 gaz guzzler for sunny weekends

Edit : Poo.....knew it was too good to be true

Only on new cars from 2017........so those gas guzzlers still get smashed, damn'it thought he had let one in there!

 

[boxbrownie]

Although it does mean (I think) that from 2022 those gas guzzlers bought in 2017 will only be subject to £140 per year.......yes?

Better than nothing I guess..........

 

[renault12ts]

Although it does mean (I think) that from 2022 those gas guzzlers bought in 2017 will only be subject to £140 per year.......yes?

Better than nothing I guess..........

No...the average price which is now £160, will reduce to £140.

 

[TDE1]

Raising of tax by 50% on insurance premiums will put the cost of car insurance policies up also.

Ha ha, trying to explain that to my junior colleagues today was a labour of love.

"But its only gone up by 3.5%"

"No, it's gone up by over 50%" ad-bloody-infinitum.

And we work in insurance...

 

[geraldrobins]

One change might be to 'de-spec' cars back to a basic level , making things like electric windows , heated seats , alloy wheels and radios and other gadgets currently standard into optional extras again , thus reducing the 'list price' of the car and dropping it into a lower tax band . Reducing the spec , and kerbweight , would also reduce emissions at point of sale , thus further reducing the tax band .

Of course , a buyer can then add all the options on - once he has bought the 'basic' car .

I doubt that. Company car tax, for example, is based on the price of the car with all extra added and you pay a little more company car tax for things like metallic paint etc. No doubt this new tax will be on the same basis.

 

[Bonecho]

And then after the first year there is a standard flat rate for ANY vehicle of £140, am I reading that correctly?

If so...........roll on that V12 gaz guzzler for sunny weekends

Edit : Poo.....knew it was too good to be true

Only on new cars from 2017........so those gas guzzlers still get smashed, damn'it thought he had let one in there!

No it is £450 road tax for the first 5 years, only in year 6 does it drop

 

[cazyp]

One change might be to 'de-spec' cars back to a basic level , making things like electric windows , heated seats , alloy wheels and radios and other gadgets currently standard into optional extras again , thus reducing the 'list price' of the car and dropping it into a lower tax band . Reducing the spec , and kerbweight , would also reduce emissions at point of sale , thus further reducing the tax band .

Of course , a buyer can then add all the options on - once he has bought the 'basic' car .

I can't belive that enough manual wind up windows are still produced to make electric windows an 'optional extra.' I bet we are getting to the point where manual window components cost more to produce than the electric units.

Ha ha, trying to explain that to my junior colleagues today was a labour of love.

"But its only gone up by 3.5%"

"No, it's gone up by over 50%" ad-bloody-infinitum.

And we work in insurance...

Well it is only the 'tax' portion of the policy that has increased by 50%.
I expect many insurers wil use 'insurers maths' and just double the premium..

 

[boxbrownie]

No it is £450 road tax for the first 5 years, only in year 6 does it drop

Although it does mean (I think) that from 2022 those gas guzzlers bought in 2017 will only be subject to £140 per year.......yes?

Which I think is what I noticed.

 

[219]

I doubt that. Company car tax, for example, is based on the price of the car with all extra added and you pay a little more company car tax for things like metallic paint etc. No doubt this new tax will be on the same basis.

While company car drivers aren't at liberty to alter their cars after purchase , and probably care less about tax as the car is a perk , private buyers don't have to take the car with extras , and since the purchase price will be lower then the VED will be set at that level for the life of the car . Subsequent retrofits after the car is bought and paid for , either for the first owner or by subsequent owners should not affect this . While electric windows might not be such an easy retrofit , things like alloy wheels or a radio certainly are .

 

[davidjpowell]

Compared to what he's done with dividends the £450 is trifling to be honest... Not my favourite budget ever.

 

[219]

VED will now be used for roads...in England.

I should think that VED will be used for roads ... wherever the duty is paid .

 

[davm666]

Inflation?

It'll come.

Also the £40k will not be amended for years like the old stamp duty thresholds which will mean even your small hatchbacks will fall in to the £340 premium.

Reading some further articles the SMMT have said they're not best pleased at not being consulted.

 

[219]

I can't belive that enough manual wind up windows are still produced to make electric windows an 'optional extra.' I bet we are getting to the point where manual window components cost more to produce than the electric units.

Try getting into a Berlin or Stuttgart taxi and you'll see plenty of wind up windows .

Mercs are widely sold with pretty basic spec everywhere but the UK .