Vehicle Excise Duty - Budget 2015

[SteveS]

An upside for us is the lower first year rates. £2K for the V8 is eye watering! On the flipside, in years to come, if you are trying to sell your MY2016 V8, it will be more difficult as everyone is going to want a 2017 registered model due to the huge difference in VED.

That is true, however the difference won't be that great until 2022 (or 2023, depending on how they interpret the "5 years"). If I haven't got rid of my 16MY before then, I'm likely keeping it

EDIT: Yeah, forgot the Mustang comes in under the premium rate. Go us, with our good value supercars!

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[Stark]

Yeah those new VED prices have fucked the early buyers up who are buying their cars because they will still have to pay £550 for a years tax while everyone else from 2017 onwards will be laying £140 which is a massive difference!! In a way I am glad I am doing a 3yr lease deal so I will pay this years £1100 tax and 2 lots of £550 tax totalling £2200 and then give the car back and swap it either for a newer model or a family car. So I will then only have to pay one lot of £550 while it is at the new £140 point.

 

[stevec]

Yeah those new VED prices have fucked the early buyers up who are buying their cars because they will still have to pay £550 for a years tax while everyone else from 2017 onwards will be laying £140 which is a massive difference!! In a way I am glad I am doing a 3yr lease deal so I will pay this years £1100 tax and 2 lots of £550 tax totalling £2200 and then give the car back and swap it either for a newer model or a family car. So I will then only have to pay one lot of £550 while it is at the new £140 point.

Your leasing?
I understood the first batch of cars could only be sold to the end user hence, lease companies can not buy them. Meaning that lease and contract hire are not available.

 

[Monty]

Your leasing?
I understood the first batch of cars could only be sold to the end user hence, lease companies can not buy them. Meaning that lease and contract hire are not available.

Ford 'Options'? (kind of a lease).

 

[Stark]

Your leasing?
I understood the first batch of cars could only be sold to the end user hence, lease companies can not buy them. Meaning that lease and contract hire are not available.

No one has said to me that I can't do the Ford Option 36 months deal on the car and give it back instead of paying the £17,459 balloon payment at the end......have you been told by your dealer you can't do this then or was you not bothered to find out because you paying to buy the car?

 

[slowhand99]

Oh yeah, forgot about the recent £1000 price hike. So you don't get your chrome surrounds on the convertible (that you pay for), but get a huge tax bill instead!

That's before the price hike!

 

[Monty]

That's before the price hike!

Oh dear, didn't realise. Maybe they'll do a 'tax break' package in 2017!

 

[SteveS]

Makes you wonder exactly how much of a hit you'd take selling the car on or trading it if its a £550/yr vehicle as opposed to a £140/yr.

 

[Lone Survivor]

VED is not a devolved issue, so much for the chancellors 'one nation' budget. That's a debate for elsewhere.

However, I'm reading it to be, 5% no emission cars, 95% whatever the emissions @£140. So it will be the vast majority of cars with the lower emissions, not zero, but low that will take the hit.

It would also be strange that all higher emission, £495 PA (?) from April 2006 to 2017 will be stuck in a separate band, that doesn't make sense and immediately destroys the second hand market for these vehicles.

The big income with come from the blanket £140 and the taxes on £40k and above cars, Audi, Jaguar, BMW, will certainly feel the pinch.

 

[slowhand99]

Makes you wonder exactly how much of a hit you'd take selling the car on or trading it if its a £550/yr vehicle as opposed to a £140/yr.

Well; we'll find out in 2022!

 

[SteveS]

Well; we'll find out in 2022!

Yes, it's not something I'll be giving a lot of thought to when I pick up the...erm...fobs to one of the first(ish) batch of cars in the country.

Unless they're going to use the base price/no options (how else would they keep track of the vehicle cost?) there would only be a couple of years worth of GTs under £40k anyway. It's pushing $34k now, up £1000 before a vehicle has hit the streets. It would be reasonable to expect the cars for 2017 delivery to be another £1000 plus the extra £1000 first year VED. By the time you've added the options you're at £38k. Even without any additional options they may introduce or an auto box it's not going to be long before the beast tops £40k.

And at the end of the day we're still not paying a 22k euro premium for an Ecoboost with AT...

 

[deep south]

So the trade off is:
Buy in 2016; pay 1st year VED of £1100 then £505 per year.
Buy in 2017; pay 1st year VED of £2000 then £140 per year.
If OTR cost is more than £40K, then an extra £310 for 5 years...

The V8 auto convertible is £39,495 today without any options.

To be honest, if you are prepared to pay for a V8 today then I can't see too many people being put off buy these changes. And the EB gives you 95% of the capability of the V8 - you pay your money and make your choice...

The chancellor is being very cute with his words; he said "the £140 rate was less than the average £166 that motorists pay at present." but that includes many older cars that pay more. The vast majority of modern cars come in at the lower bands, which must be affecting their revenues... so most new cars will now pay a lot more after 2017.

 

[croyde]

I keep re-reading this thread to see if I have missed it.

What's happening in 2022?

 

[SteveS]

I keep re-reading this thread to see if I have missed it.

What's happening in 2022?

This was my mistake, please ignore. I was assuming all Mustang GTs would fall foul of the £310 additional VED for 5 years when in actual fact it would just be the most expensive.

How much of a hit, if any, MY16 owners take on their cars due to newer ones' lower VED will depend on how the plan is eventually implemented. I'd expect to be paying £500+ for life while 2017 registered cars get £140 however.

 

[slowhand99]

That's before the price hike!

.....but on second thoughts includes current VED; so list is actually below £40k (before the hike). Please ignore my ramblings :headbonk:

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