Could the VED regime kill off some secondhand cars?

[Rollcage]

In actual terms, it's only a fiver a week extra for most vehicles, but it's having to pay out £500 odd a year that hurts.

Spread over a year, the cost isn't so bad.

[GroundEffect]

My car is £475 per year. It's not that bad, really.

[Rollcage]

You wouldn't mind paying it on something worthwhile, but it's not worth paying it on one of PCD's Daewoo taxis!

Actually does help to make some of those cars more attainable.

[Sideways Tim]

It's about time VED was applied to fuel and thereby ending the stupid various criteria that form it now.
The more you use, the more you pay and it's a small additional daily/weekly charge insted of a fking big hit in one go.
Having just taxed my Volvo at £470, I'd much rather pay an extra 2ppl

[Toaster Pilot]

I definitely think more of these cars will be scrapped when they get to being worth £1000 and needing simple things like suspension and tyres when they're also nearly £500 to tax

[JagXJR]

I thought the new rates applied after 2001? as far as I can see the rate is the same from 2001 - date or am I missing something?

I usually buy cars before 2001 to pay £220 a year as I tend to buy big powerful cars. My XJR cost less to insure than my 1.6 Scenic which is a 2002 model.

[V8mate]

JagXJR said:

I thought the new rates applied after 2001? as far as I can see the rate is the same from 2001 - date or am I missing something?

I usually buy cars before 2001 to pay £220 a year as I tend to buy big powerful cars. My XJR cost less to insure than my 1.6 Scenic which is a 2002 model.

From 2001 they're capped at Band K; after 2006 bands L & M kick in too.

[jonah35]

loads of people on here say it doesn't matter but the truth is, to someone paying £500 in one lump sum who only has a car worth a couple of grand it's a big shock

you can finance that £3k car over 3 years at say £100 per month or whatever but you can't finance road tax. Imagine someone on £1k per month or £1300 per month after tax (not a bad job for many working class people) and then after their outgoings many millions of people in this country would like to end up with a 'spare' £100 per month after outgoings.

They think they're doing well and have a bit 'stashed' for a rainy day of say £400 and then all of a sudden comes a £500 tax bill as one lump sum. It will hurt many people. (They are already paying fuel, insurance, council tax, income tax, national insurance tax, insurance premium tax etc)

I think once these cars become £2k or less they will become breakers - even things like the Golf R32 etc.

Sad day but that's what I think

[Easternlight]

What's the huge jump at band K to band L all about? Is a 226 g/km car really nearly twice as bad as a 225 one?
And then band M £15 more why bother with it.

Having just bought an S4 I found the manual ones are band L yet some of the auto's are K, all for the sake of a couple of g/km!

The duty needs to reduce as the car ages or they will be scrap.

[DaveH23]

Escy said:

I was considering a Mk1 Mazda 3 MPS but the VED band put me off it. It's not a good enough car to justify the cost of the tax.

I can confirm it is a good enough car

[philmots]

I had the same with my old 9-3 2.8T V6.. Mine was registered 3-3-06 so was just in the lower group on an 06 plate.

I'd flatly refuse to buy one in the £475 group (most are)

Same with the Mazda 3 MPS, fancied one but there's no way that I'd pay it.

On something like an M3 or similar with 300 to 400hp I could probably justify it but on the more regular stuff it's simply not worth it IMO.

[DaveH23]

The only good thing about it is because people dont like it paying higher VED, values of said cars plummit making the VED more bareable in my opinion.

As said above if you look at it as a weekly price its pretty insignificant, its the lump payment that alot of people dont like.

[Glosphil]

Easternlight said:

What's the huge jump at band K to band L all about? Is a 226 g/km car really nearly twice as bad as a 225 one?
And then band M £15 more why bother with it.

Having just bought an S4 I found the manual ones are band L yet some of the auto's are K, all for the sake of a couple of g/km!

The duty needs to reduce as the car ages or they will be scrap.

The Government wants older cars scrapped and replaced with newer cars with lower CO2 output. They are desperate to meet the CO2 targets they set themselves. No interest in the CO2 produced in producing new cars as that isn't included in their targets (especially as most new cars bought in the UK are not manufactured in the UK). The scrappage scheme was an example of this policy.

[JagXJR]

V8mate said:

From 2001 they're capped at Band K; after 2006 bands L & M kick in too.

Thanks V8mate, had not realised that. I can now look at buying a newer car as long as older that 2006. Wish I had known that, I would have bought an X-Type 4wd instead of the Subaru Mind you the Subaru kept me mobile all last winter and has not let me down so should not complain.

My only worry now is if I buy a nice V8 and they decide to change the tax bands

[Justin Case]

The only fair way is to have one VED rate for all cars, similar to the TV licence which is the same no matter wht telly you have. If that is a step to far there is no logical reason not to cap all cars at the 2006 rate after the first year; that would still mean fewer new high emission cars coming onto the roads as at present, but not penalise drivers of older vehicles, which tend to do a lower mileage, or lead to the premature scrapping of perfectly good cars.

[KM666]

Good point OP. All the exciting cars in family fall under the old tax rules. £260 a year VED (or whatever it is now, the standard over 1600cc duty), if I was in the market for something exciting I would be put off if I had to pay the new rates.

[poing]

I think it will be a good thing for the smart buyers. £600 per year would be £50 per month, so about 1 extra tank of fuel. The problem is that it's all at once so it hurts when the car is only worth that in first place.

[Kentish]

£9.62 a week doesn't sound so bad does it but £500 p/a really is a crazy amount if you have a low value older car.

[MarsellusWallace]

A good time for people who qualify for disabled taxation though.They can buy a £490 per year 2006 car for buttons because of its tax/value ratio and then not have to pay the tax.

[LuS1fer]

Kentish said:

£9.62 a week doesn't sound so bad does it but £500 p/a really is a crazy amount if you have a low value older car.

People who work it out weekly are kind of missing the point.
I can have a new digital SLR camera or digital TV or Sky HD for that, hell, I camn have a complete car for that but the truth is, we spend our money and the £500 arrives like a punch in the throat with an anvil.