Could the VED regime kill off some secondhand cars?
Discussion
Drawing on a number of threads here on PH, the idea that we're a forum full of folk driving the latest, fastest, sexiest cars is an illusion. For most of us, a half decent used car with a few years under its belt is the norm.
With cars as old as seven years now attracting VED charges of up to almost £500 per annum, do you think that a pretty large range of cars will find their attractiveness to used car buyers killed by the cost of the tax disc?
With the disc quite easily costing 25-33% of the car's purchase price, I can't imagine the situation is helped by the perceived poor value received in exchange for this taxation instrument either. (and I'm well aware that car/driver-based taxation is not a ring-fenced revenue!)
Or do you think the secondary agenda is simply to get us all to scrap our big old cars and buy industry-supporting, brand new, little cars with low emissions?
With cars as old as seven years now attracting VED charges of up to almost £500 per annum, do you think that a pretty large range of cars will find their attractiveness to used car buyers killed by the cost of the tax disc?
With the disc quite easily costing 25-33% of the car's purchase price, I can't imagine the situation is helped by the perceived poor value received in exchange for this taxation instrument either. (and I'm well aware that car/driver-based taxation is not a ring-fenced revenue!)
Or do you think the secondary agenda is simply to get us all to scrap our big old cars and buy industry-supporting, brand new, little cars with low emissions?
If you factor in the cost of the tax over the time you intend to keep the car, and there's nothing else you want that would be less over the same period, it's not such an issue and there are some tasty deals to be had.
My R32 is one of those in the £490 tax band but an extra £2000 on my budget to cover the 4 years I might keep the car doesn't get me into anything else I want... and I'd still have to pay £1000 in tax over that period anyway.
Man maths
My R32 is one of those in the £490 tax band but an extra £2000 on my budget to cover the 4 years I might keep the car doesn't get me into anything else I want... and I'd still have to pay £1000 in tax over that period anyway.
Man maths
zeduffman said:
If you factor in the cost of the tax over the time you intend to keep the car, and there's nothing else you want that would be less over the same period, it's not such an issue and there are some tasty deals to be had.
My R32 is one of those in the £490 tax band but an extra £2000 on my budget to cover the 4 years I might keep the car doesn't get me into anything else I want... and I'd still have to pay £1000 in tax over that period anyway.
Man maths
Quite true. But it could still be quite a shock at the point of purchasing the car for some people. It has become as important to check the VED band as getting an insurance quote, for example.My R32 is one of those in the £490 tax band but an extra £2000 on my budget to cover the 4 years I might keep the car doesn't get me into anything else I want... and I'd still have to pay £1000 in tax over that period anyway.
Man maths
V8mate said:
Quite true. But it could still be quite a shock at the point of purchasing the car for some people. It has become as important to check the VED band as getting an insurance quote, for example.
Yep, although at the risk of over-generalising, I would say the kinds of cars that attract the highest VED band are likely to be bought by people who would do that kind of research well in advance anyway.V8mate said:
Or do you think the secondary agenda is simply to get us all to scrap our big old cars and buy industry-supporting, brand new, little cars with low emissions?
I imagine that there is an element of that.Together with some low monthly lease deals, new cars are quite affordable to get hold of to the middle-class.
It may not be a huge amount in the overall scheme of things but it is like p*ssing money down the drain. All my cars are about £220 a year. I would resent paying more because I resent paying that, especially the Mustang, oddly, because that only does about 1000 miles a year so it's not even good value for a 462hp V8.
I think this is why the 370Z sells poorly and why Ford will get a big shock when the Mustang goes global as they realise people just won't pay the VEL on a bigger engine.
I think this is why the 370Z sells poorly and why Ford will get a big shock when the Mustang goes global as they realise people just won't pay the VEL on a bigger engine.
Things like big mercs and BMWs and sports stuff like the 350z's of this world will continue to exist for years to come as people will still view them as classics and status symbols and will always attract a certain type of buyer.
the likes of big engine Ford's and the like will be scrapped as there is no 'status' in owning one and even with 'man maths' will be hard to justify running one.
the likes of big engine Ford's and the like will be scrapped as there is no 'status' in owning one and even with 'man maths' will be hard to justify running one.
A lex said:
No, it will just make certain cars less attractive as a 2nd hand purchase and therefore a bit cheaper in comparison to the competition.
In countries where the VED regime is much more expensive than the UK, you still see cars of all ages on the roads.
A 10yr old diesel estate will typically cost €12-1500pa in VED here, yet there are still plenty about.
Its all about what people are willing to pay, and generally in the UK I think there's still a big margin until people genuinely start giving up their cars en masse.
I think you could probably treble the price of VED across the board in the UK and it would make little difference to the amount of cars on the road.
It's not about giving up completely, it's about certain cars being too expensive to tax (due to their VED rating) in relation to their purchase price and other alternative choices.In countries where the VED regime is much more expensive than the UK, you still see cars of all ages on the roads.
A 10yr old diesel estate will typically cost €12-1500pa in VED here, yet there are still plenty about.
Its all about what people are willing to pay, and generally in the UK I think there's still a big margin until people genuinely start giving up their cars en masse.
I think you could probably treble the price of VED across the board in the UK and it would make little difference to the amount of cars on the road.
Edited by A lex on Saturday 3rd August 13:05
If there isn't an alternative (IE market wide punitive VEd rates, such as you experience), then it's the same for everyone.
V8mate said:
Or do you think the secondary agenda is simply to get us all to scrap our big old cars and buy industry-supporting, brand new, little cars with low emissions?
Actually this is and was the primary agenda to secure motor industry support for the biggest business in the world - politics....Just imagine if the funds spent on scrapage had been invested in developing a small efficient retrofit engine for old cars - would have been a far 'greener' solution but the motor manufacturers would have hated it.
The answer is yes - a late 06 plated petrol powered car is already less value in a lot of people's eyes than a late 55 plate.
I point blank wouldn't even consider a 5 grand or so car costing £450 a year to tax as viable - paying ten percent or more of the car's value per annum is just lunacy unless it's special in some way.
Having watched the 5 grand market for the Subaru Forester for a while the late 06/07 cars do tend to stick. They do sell, but the 55 plates sell quicker, presumably to people who are more aware of the doubled car tax on newer cars.
Give it a few more years and if they keep the 06 cutoff as it is you will see high tax cars worth a couple of grand being stripped for spares rather than kept on the road. Madness.
But it helps keep the car makers and the green rollercoaster in business
I point blank wouldn't even consider a 5 grand or so car costing £450 a year to tax as viable - paying ten percent or more of the car's value per annum is just lunacy unless it's special in some way.
Having watched the 5 grand market for the Subaru Forester for a while the late 06/07 cars do tend to stick. They do sell, but the 55 plates sell quicker, presumably to people who are more aware of the doubled car tax on newer cars.
Give it a few more years and if they keep the 06 cutoff as it is you will see high tax cars worth a couple of grand being stripped for spares rather than kept on the road. Madness.
But it helps keep the car makers and the green rollercoaster in business
POORCARDEALER said:
It already has killed some off, a few low value Daewoo autos etc fall into the 500 quid bracket, they are now breakers, unsellable unless there's a lump of tax on them
There you go - a perfect example of environmentalists at work, forcing perfectly serviceable V8mate said:
zeduffman said:
If you factor in the cost of the tax over the time you intend to keep the car, and there's nothing else you want that would be less over the same period, it's not such an issue and there are some tasty deals to be had.
My R32 is one of those in the £490 tax band but an extra £2000 on my budget to cover the 4 years I might keep the car doesn't get me into anything else I want... and I'd still have to pay £1000 in tax over that period anyway.
Man maths
Quite true. But it could still be quite a shock at the point of purchasing the car for some people. It has become as important to check the VED band as getting an insurance quote, for example.My R32 is one of those in the £490 tax band but an extra £2000 on my budget to cover the 4 years I might keep the car doesn't get me into anything else I want... and I'd still have to pay £1000 in tax over that period anyway.
Man maths
POORCARDEALER said:
It already has killed some off, a few low value Daewoo autos etc fall into the 500 quid bracket, they are now breakers, unsellable unless there's a lump of tax on them
It's only going to get worse I think.I was looking for a new car recently & really liked a Subaru B9 / Tribeca. The £500 tax put me right off it as I would get annoyed about paying that much every year.
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