2017 VED rates

[DRIVER200]

Anyone know whether the Government are really planning on introducing the levy of VED rates highlighted in the 2015 budget as they are suppose to kick in from April 2017. If so big hikes on +£40,000 cars.

 

[Abcan]

Anyone know whether the Government are really planning on introducing the levy of VED rates highlighted in the 2015 budget as they are suppose to kick in from April 2017. If so big hikes on +£40,000 cars.

It's definitely coming in April 17

 

[Aletank]

Is that the List Price or the Invoice Price ?

 

[whitenemesis]

"The law defines the price as the car’s list price, so any discount you are able to negotiate won’t affect the car’s VED band. The list price is the price of the car before the ‘on-the-road’ charges are added, such as a delivery charge, new vehicle registration fee, numberplates and fuel.

Beware, too, that if you buy a car that has a list price of less than £40k, but add some options that take the price over the threshold, you’ll be liable for the higher rate of tax. In short, an option for a few hundred pounds could end up costing you more than £1500 over five years in extra VED costs."

2017 VED rates - list price vs price paid - What Car?

 

[RonFleet]

"The law defines the price as the car’s list price, so any discount you are able to negotiate won’t affect the car’s VED band. The list price is the price of the car before the ‘on-the-road’ charges are added, such as a delivery charge, new vehicle registration fee, numberplates and fuel.

Beware, too, that if you buy a car that has a list price of less than £40k, but add some options that take the price over the threshold, you’ll be liable for the higher rate of tax. In short, an option for a few hundred pounds could end up costing you more than £1500 over five years in extra VED costs."

2017 VED rates - list price vs price paid - What Car?

Ouch!

 

[st13phil]

As I said at the time, this is a nasty "envy" tax that harks back to the 1990's and the "special car tax". It stinks.

 

[wivenhoe]

Ouch!

This may bring some sense to list prices - Merc need to understand that the over inflated list price so the salesmen can give apparent big discounts will be costing buyers real cash and may deter the whole sale

 

[S205-FTW]

Given the state of Sterling, be prepared for price rises. This will push more cars into the £40k bracket.

 

[S205-FTW]

This may bring some sense to list prices - Merc need to understand that the over inflated list price so the salesmen can give apparent big discounts will be costing buyers real cash and may deter the whole sale

It's a premium brand so no chance of list prices coming down. Goodness gracious, people might think BMW and Audi are superior if MB drop prices!

So the high list price and juicy discount game goes on. Except some people don't want to shop around and just pay full whack list at their nearest dealer.

 

[219]

"The law defines the price as the car’s list price, so any discount you are able to negotiate won’t affect the car’s VED band. The list price is the price of the car before the ‘on-the-road’ charges are added, such as a delivery charge, new vehicle registration fee, numberplates and fuel.

Beware, too, that if you buy a car that has a list price of less than £40k, but add some options that take the price over the threshold, you’ll be liable for the higher rate of tax. In short, an option for a few hundred pounds could end up costing you more than £1500 over five years in extra VED costs."

2017 VED rates - list price vs price paid - What Car?

The obvious way round that , which I'm sure will come to the fore again , will be for people to buy the base car then have options retrofitted by the dealer , perhaps at the first service - for example ordering the car with steel wheels ( ideal for winter tyres ) then having the alloy wheels retrofitted afterwards - same can be done with towbars and many other items .

If this penalty carries over to subsequent owners , it will make cars harder to sell at say three years old since used car buyers are more likely to be buying with their own money and paying VED out of their own pockets ( as opposed to many new cars being company funded in this bracket ) - I guess a £40K + new car at three years old would be a £20K or thereabouts used car and a tax penalty will put private buyers off .

It presumably only applies to new cars sold after April and isn't retrospective to existing cars in the way that some VED hikes are .

 

[whitenemesis]

That's a possibility but many options never get an official MB retrofit. Others only in the years to come. Add to that of course is the hugely higher cost per retrofit.

I don't see many buyers going down that route, certainly not the biggest buyers of new cars, the fleet operators

 

[219]

Indeed , fleet operators will just buy cars below the price threshold , and we will again see de-specced 'fleet specials' designed to sound like something special when they are the opposite .

 

[rusty55]

I don't think it's a envy tax at all we're ever it's set it's just another loop hole closed

 

[190]

Yes a loop hole of the governments making. They produced an emissions testing regime to determine VED that the car manufactures learnt to run rings around and they couldn't stomach the idea that all these expensive new luxury cars were getting away with paying very little VED or non at all.

Presumably Total VED income was falling fast and they had to do something. With not enough time to devise something better they have knee jerked this solution.

If you look back at the myriad changes to VED it's a mess. The only equitable solution is to scrap VED and add it to fuel tax.

 

[markjay]

..If this penalty carries over to subsequent owners , it will make cars harder to sell at say three years old ... .

When I bought the Merc, I traded-in a 7 years old v6 Vauxhall.

At the time the government were planning to introduce a VED increase to £400(!) for this engine size, and I was offered next to nothing on the Vauxhall - the dealer said that a V6 petrol is difficult enough to sell any day, but with a VED of £400 it won't shift at all.

(Eventually, the planned VED increase never happened... so I just lost out.)

 

[Deleted member 65149]

When I bought the Merc, I traded-in a 7 years old v6 Vauxhall. At the time the government were planning to introduce a VED increase to £400(!) for this engine size, and I was offered next to nothing on the Vauxhall - the dealer said that a V6 petrol is difficult enough to sell any day, but with a VED of £400 it won't shift at all. (Eventually, the planned VED increase never happened... so I just lost out.)

I pay £180 annual VED for my £45,000 V6 petrol. I'm pleased to see that the hike is only suggested for new cars from April 2017.