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?
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
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.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.
S10GTA said:
I really would like a C6, but the VED is £495 unless you get one of the ten lower rate ones. I just cannot justify the cost for a car that gets used for under 5k per annum
I think that's a really good example of a late model which will have to drop to jalopy prices to find a buyer.I can't wait!
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