New tax rate from 1st of April

[cinek]

Not sure if this has been posted already, so...

http://http://www.mercedes-benz.co.uk/content/unitedkingdom/mpc/mpc_unitedkingdom_website/en/home_mpc/passengercars/home/new_cars/ved-rates.html?csref=EML1702080002_PCEML06363_VED-email_find-out-more_national-email_CTA_030217

This bit in particular "All new vehicles bought and registered from the 1st April with a list price* over £40,000 will be subject to a premium supplement of £310, payable each year for 5 years from the end of the first vehicle licence." sounds just great

 

[dejongj]

But does it truly make a change? I mean my car is about £55K, will I change my choice for a difference of £310? No most definitely not.

 

[Delayed Steve]

But does it truly make a change? I mean my car is about £55K, will I change my choice for a difference of £310? No most definitely not.

No it won't put me off either.

 

[grober]

I think the government's reply would be along the lines of " other vehicles with a list price below £40,000 are available to purchase"

 

[Scooby_Doo]

It might affect the resale value when the buyer of say a three year old car realises that it's an extra £310 per year road tax for the next 3 years.

 

[dejongj]

It might affect the resale value when the buyer of say a three year old car realises that it's an extra £310 per year road tax for the next 3 years.

So much so that they rather buy an older car to save £900 in tax? I doubt it. I mean we aren't still buying pre-2006 vehicles to save some tax are we?

 

[wemorgan]

Most new cars are sold through pcp/pch finance. These new ved rates for cars over £40k add about 5% to the total. So a consideration, but quite minor.

 

[dejongj]

Most new cars are sold through pcp/pch finance. These new ved rates for cars over £40k add about 5% to the total. So a consideration, but quite minor.

Only if you keep it for 5 years which is rare on pcp/pch finance. And then only when you go for a £40K car, the moment the price increases the percentage reduces rapidly

 

[wemorgan]

With pch the ved is included in the lease cost. So post April lease prices are now at least 5% higher than before.

 

[gr1nch]

But does it truly make a change? I mean my car is about £55K, will I change my choice for a difference of £310? No most definitely not.

I agree with that, but whilst it wouldn't change the choice, but it does add a small dent.

If the prove hike doesn't bother car drivers they might end up putting it higher, to the limit of what the market can stand!. Like escalating fuel prices over time that tend not to drop to the historic level matching the barrel price.

 

[Deleted member 6183]

But does it truly make a change? I mean my car is about £55K, will I change my choice for a difference of £310? No most definitely not.

Would you not feel the same about buying Winter tyres?

 

[Gary129]

If you can afford a new car over £40k is £310 a year going to make a difference?

 

[John]

I doubt it - £26 a month more is not worth worrying about.

Just drink 7 pints less lager a month - it will do you good.

 

[dejongj]

Would you not feel the same about buying Winter tyres?

There is a bit of a difference. Tax can't be avoided and you know it upfront. If Mercedes informed prospective owners upfront of what is required to drive this car then I would have been given a choice. They neglected to do that however. But thanks to us making some noise at least today prospective owners are informed and given the choice.

I don't think the two situations are comparable.