"Crippling VED"
Discussion
Someone just reffered to the VED for a car being "Crippling", I am probably buying a 350Z with the full £490 VED tomorrow and have developed a limp....
Actually no, I just will have a hole in my bank account, ok, it isnt great but people pay thousands, sometimes tens of thousands for cars and then fret because of an extra few quid each year, they talk like the difference between a 2005 and a 2006 model is several grand in VED, its £210 more, not £490 more.
I know people who spend 30k on a diesel for the economy and road tax benefits, run it for three years and do 15 - 20k, then take a ten plus grand hit when they trade it in, usually just fafter getting it serviced and sticking new brakes and tyres on it.
Ok, very budget and mileage dependant but think it needs keeping in perspective as part of the total costs.
Actually no, I just will have a hole in my bank account, ok, it isnt great but people pay thousands, sometimes tens of thousands for cars and then fret because of an extra few quid each year, they talk like the difference between a 2005 and a 2006 model is several grand in VED, its £210 more, not £490 more.
I know people who spend 30k on a diesel for the economy and road tax benefits, run it for three years and do 15 - 20k, then take a ten plus grand hit when they trade it in, usually just fafter getting it serviced and sticking new brakes and tyres on it.
Ok, very budget and mileage dependant but think it needs keeping in perspective as part of the total costs.
t. Less relevant on newer cars, but a 2006 car is now nearly 8 years old so that £30k car is now worth £5k.
Someone splashing £5k (or less) on a car does not want to be spending £500 on tax. It's not £10 per week, or only £1.40 per day - it's £500 up front. To someone on a very limited budget, I'd say that yes, £500 is "crippling".
I bought a new (to me) car recently, and for probably the first time ever I looked at the cost of the tax. I'm happy with the tax being aroung £200, but £500 was not happening. I looked at a Subaru Tribeca - great car, lovely interior, could live with the mid 20s mpg as I don't do many miles, but the idea of handing over £500 every 12 months just meant it was a no from me. Value of the Tribeca was about £9k ish.
It's only going to get worse I thing - fast forward 5 years when that 5 year old, "08" plate car is now 10 years old & worth say £1500. Is someone in the market for a £1500 car going to pay a third of the purchase price in tax?
I predict the market for some of these cars is going to disappear - I reckon on some of them they will get to a point & the value will be effectively nil.
Someone splashing £5k (or less) on a car does not want to be spending £500 on tax. It's not £10 per week, or only £1.40 per day - it's £500 up front. To someone on a very limited budget, I'd say that yes, £500 is "crippling".
I bought a new (to me) car recently, and for probably the first time ever I looked at the cost of the tax. I'm happy with the tax being aroung £200, but £500 was not happening. I looked at a Subaru Tribeca - great car, lovely interior, could live with the mid 20s mpg as I don't do many miles, but the idea of handing over £500 every 12 months just meant it was a no from me. Value of the Tribeca was about £9k ish.
It's only going to get worse I thing - fast forward 5 years when that 5 year old, "08" plate car is now 10 years old & worth say £1500. Is someone in the market for a £1500 car going to pay a third of the purchase price in tax?
I predict the market for some of these cars is going to disappear - I reckon on some of them they will get to a point & the value will be effectively nil.
J4CKO said:
I know people who spend 30k on a diesel for the economy and road tax benefits, run it for three years and do 15 - 20k, then take a ten plus grand hit when they trade it in
If they had specced the equivalent petrol engine instead, it would have been a fifteen grand depreciation hit.AudiWurst said:
J4CKO said:
I know people who spend 30k on a diesel for the economy and road tax benefits, run it for three years and do 15 - 20k, then take a ten plus grand hit when they trade it in
If they had specced the equivalent petrol engine instead, it would have been a fifteen grand depreciation hit.AudiWurst said:
J4CKO said:
I know people who spend 30k on a diesel for the economy and road tax benefits, run it for three years and do 15 - 20k, then take a ten plus grand hit when they trade it in
If they had specced the equivalent petrol engine instead, it would have been a fifteen grand depreciation hit.I dont know what the goverment is going to do with VED, cars in general, the Liberals may get in and ban them but I just think Jim Morrison said it right,
http://www.youtube.com/watch?v=YSlXjrxqDOE
northwest monkey said:
Less relevant on newer cars, but a 2006 car is now nearly 8 years old so that £30k car is now worth £5k.
Someone splashing £5k (or less) on a car does not want to be spending £500 on tax. It's not £10 per week, or only £1.40 per day - it's £500 up front. To someone on a very limited budget, I'd say that yes, £500 is "crippling".
I bought a new (to me) car recently, and for probably the first time ever I looked at the cost of the tax. I'm happy with the tax being aroung £200, but £500 was not happening. I looked at a Subaru Tribeca - great car, lovely interior, could live with the mid 20s mpg as I don't do many miles, but the idea of handing over £500 every 12 months just meant it was a no from me. Value of the Tribeca was about £9k ish.
It's only going to get worse I thing - fast forward 5 years when that 5 year old, "08" plate car is now 10 years old & worth say £1500. Is someone in the market for a £1500 car going to pay a third of the purchase price in tax?
I predict the market for some of these cars is going to disappear - I reckon on some of them they will get to a point & the value will be effectively nil.
In a nutshell, add in that TAX and insurance and MOT all tend to hit at a similar time. So the £500 Tax plus a couple of hundred to get through the MOT, leaves you nearly a grand down you then question if it wouldn't make sense to buy something newer cheaper on TAX and generally more economical.Someone splashing £5k (or less) on a car does not want to be spending £500 on tax. It's not £10 per week, or only £1.40 per day - it's £500 up front. To someone on a very limited budget, I'd say that yes, £500 is "crippling".
I bought a new (to me) car recently, and for probably the first time ever I looked at the cost of the tax. I'm happy with the tax being aroung £200, but £500 was not happening. I looked at a Subaru Tribeca - great car, lovely interior, could live with the mid 20s mpg as I don't do many miles, but the idea of handing over £500 every 12 months just meant it was a no from me. Value of the Tribeca was about £9k ish.
It's only going to get worse I thing - fast forward 5 years when that 5 year old, "08" plate car is now 10 years old & worth say £1500. Is someone in the market for a £1500 car going to pay a third of the purchase price in tax?
I predict the market for some of these cars is going to disappear - I reckon on some of them they will get to a point & the value will be effectively nil.
I spent ages looking for a 2006 mk5 Astravan with the right spec just so I get the cheaper tax rate of £140/yr instead of £220/yr for the exact same van/engine registered after 2007. Then I took a reality check and realised that £80 was about half a nights work for me and just went out and bought a 2010 model instead, paid the damned tax and got on with my life.
£490 is a big slab of cash though. That's like half a grand, just for tax. I get why people are upset about it - I would be too, especially if the car's value is only a few G.
£490 is a big slab of cash though. That's like half a grand, just for tax. I get why people are upset about it - I would be too, especially if the car's value is only a few G.
J4CKO said:
Someone just reffered to the VED for a car being "Crippling", I am probably buying a 350Z with the full £490 VED tomorrow and have developed a limp....
Actually no, I just will have a hole in my bank account, ok, it isnt great but people pay thousands, sometimes tens of thousands for cars and then fret because of an extra few quid each year, they talk like the difference between a 2005 and a 2006 model is several grand in VED, its £210 more, not £490 more.
I know people who spend 30k on a diesel for the economy and road tax benefits, run it for three years and do 15 - 20k, then take a ten plus grand hit when they trade it in, usually just fafter getting it serviced and sticking new brakes and tyres on it.
Ok, very budget and mileage dependant but think it needs keeping in perspective as part of the total costs.
I can sort of see the point though. Many people simply don't plan very well, so when a car needs taxing they have to do it there and then with their current available funds. Not a problem if you either have a large disposable income that doesn't get used, or if you have savings.Actually no, I just will have a hole in my bank account, ok, it isnt great but people pay thousands, sometimes tens of thousands for cars and then fret because of an extra few quid each year, they talk like the difference between a 2005 and a 2006 model is several grand in VED, its £210 more, not £490 more.
I know people who spend 30k on a diesel for the economy and road tax benefits, run it for three years and do 15 - 20k, then take a ten plus grand hit when they trade it in, usually just fafter getting it serviced and sticking new brakes and tyres on it.
Ok, very budget and mileage dependant but think it needs keeping in perspective as part of the total costs.
But I suspect for many people, finding £100-200 spare on a single months pay packet can be done. But needing to find the best part of £500 is rather more challenging.
I looked at a 2007 Saab 93 Aero (the 2.8 one) that would be £475 a year it doesn't sound bonkers as a stand alone figure but it wasn't far off 10% of the price a dealer was asking for the car. With VED going up and the values of thirsty petrol cars I could easily see the car being nearly impossible to sell on in 2/3 years time.
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