New VED and £515 rate cars
Discussion
Just wondering how much people think this will impact some cars.
I remember it was the almost instant death knell for some high'ish capacity petrol powered white goods cars when it first came in, and now as cars get older will start impacting 2006 on petrol V70, Mazda CX7, XC90 auto D5 etc but people simply took on the chin the higher price on more sporty/executive stuff as it was the new norm.
With the future of 5 year old cars being £140 per annum will even these sporty cars now suffer and we'll see a real lack of interest in keeping 5-15 year old cars on the road. I know it's a small part of the cost of keeping a car but it will be almost x4 the cost and as cars get older the demographic for these cars ownership 'tends' to be the more thrifty types.
It won't effect much the decisions of those who buy brand new, but it'll be interesting to see if certain makes and models are generally disowned! If they, a long way down the line, become desirable because of their rarity or even if (sit down for this one) the government reduce the rates a bit sometime in the future.
I remember it was the almost instant death knell for some high'ish capacity petrol powered white goods cars when it first came in, and now as cars get older will start impacting 2006 on petrol V70, Mazda CX7, XC90 auto D5 etc but people simply took on the chin the higher price on more sporty/executive stuff as it was the new norm.
With the future of 5 year old cars being £140 per annum will even these sporty cars now suffer and we'll see a real lack of interest in keeping 5-15 year old cars on the road. I know it's a small part of the cost of keeping a car but it will be almost x4 the cost and as cars get older the demographic for these cars ownership 'tends' to be the more thrifty types.
It won't effect much the decisions of those who buy brand new, but it'll be interesting to see if certain makes and models are generally disowned! If they, a long way down the line, become desirable because of their rarity or even if (sit down for this one) the government reduce the rates a bit sometime in the future.
Mr Oblong said:
I am well aware, but you are still not comprehending what the OP was discussing.
The original poster was talking about whether the 2017-onward tax regime will affect how 2006-16 cars are treated by the used market and therefore by owners.
Example- a 2016 370z would normally be worth slightly less than a 2017 due to age, but now it will also have accelerated depreciation (after a few years, when it's £515 vs £140) on the basis of being much more expensive to tax than the barely-newer model.
Reading comprehension is key.
ta I thought for a minute I'd not been so clear, a 370Z is a good example of what I am alluding to, the higher tax ones will be older AND more expensive to tax and whilst I get the point of another poster about second car running costs and what does a bit more tax matter in the big scheme of things, but if you are considering a 370Z as a classic car keeper one day then over the years (to a hypothetical 40 year tax exemption)you are talking thousands of pounds of extra tax when you could choose a newer car and put that money to the maintenance budget (every little helps when you are trying to run an older sporty second car). The original poster was talking about whether the 2017-onward tax regime will affect how 2006-16 cars are treated by the used market and therefore by owners.
Example- a 2016 370z would normally be worth slightly less than a 2017 due to age, but now it will also have accelerated depreciation (after a few years, when it's £515 vs £140) on the basis of being much more expensive to tax than the barely-newer model.
Reading comprehension is key.
Edited by Mr Oblong on Wednesday 18th January 21:52
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