Just Thinking Out Loud...

[matfitzpatrick]

Hi all...in light of the new road tax laws coming into effect in April this year I am wondering which car registered post April might offer the 'best bang for your buck' while being cheap to tax. So far I think the Ford Mustng 5.0 V8 GT is a great choice; over 400bhp, high CO2 emissions (over 255) which means it is currently £515 per year but sub 40K to buy so after April it will only be £140 per year to tax (once the inital 2k showroom tax is paid out). Seems odd that the tax will be the same as a mini hatch or similar.

I am sure there are other cars I have overlooked, even the 40K+ cars with high CO2 will drop from £515 to £450 per year for years 1-5 and new Tesla owners will also be stung for £310 per year for years 1-5 as well.

[daemon]

matfitzpatrick said:

Hi all...in light of the new road tax laws coming into effect in April this year I am wondering which car registered post April might offer the 'best bang for your buck' while being cheap to tax. So far I think the Ford Mustng 5.0 V8 GT is a great choice; over 400bhp, high CO2 emissions (over 255) which means it is currently £515 per year but sub 40K to buy so after April it will only be £140 per year to tax (once the inital 2k showroom tax is paid out). Seems odd that the tax will be the same as a mini hatch or similar.

I am sure there are other cars I have overlooked, even the 40K+ cars with high CO2 will drop from £515 to £450 per year for years 1-5 and new Tesla owners will also be stung for £310 per year for years 1-5 as well.

For outright bangs per buck it would be hard to beat the Mustang, however having driven one, its not a great all round performance car.

[carl_w]

matfitzpatrick said:

Hi all...in light of the new road tax laws coming into effect in April this year I am wondering which car registered post April might offer the 'best bang for your buck' while being cheap to tax. So far I think the Ford Mustng 5.0 V8 GT is a great choice; over 400bhp, high CO2 emissions (over 255) which means it is currently £515 per year but sub 40K to buy so after April it will only be £140 per year to tax (once the inital 2k showroom tax is paid out). Seems odd that the tax will be the same as a mini hatch or similar.

Yes, in a few years' time I wouldn't want to be selling a £515/yr Mustang vs a £140/yr Mustang. What does the £40k price refer to? List price, presumably, but including options or not? Will we see a raft of £39,995 cars with dealer fit options?

[matfitzpatrick]

Hi Carl. From what I have read it is the final RRP including options, so if the car comes in at 41k and you haggle the dealer to 39k you still get stung for the extra £310 as the RRP is used to calculate the tax. The smallest of optional extras tipping you over the 40K marker could end up costing £1550 in extra tax over 5 years!

Didnt consider the impact on used prices either, although cars like my old Mini Cooper D which is tax free could actually go up in value as a result (should have kept it!). Get out and buy up all the 99g CO2 cars now and sell them at a premium in a few months. Wonder if there will be a pre-reg market flood in March/April on these smaller hatches?

Deamon, I am torn on the Mustang. I love the idea, the look and the fact its a V8 so should sound great but wont compete with equivalent rivals. I've not driven one so just an ill-formed opinion really but I guess for sounds and just rumbling around it would be an interesting drive?

Edited by matfitzpatrick on Tuesday 10th January 21:59

[carl_w]

matfitzpatrick said:

Hi Carl. From what I have read it is the final RRP including options, so if the car comes in at 41k and you haggle the dealer to 39k you still get stung for the extra £310 as the RRP is used to calculate the tax. The smallest of optional extras tipping you over the 40K marker could end up costing £1550 in extra tax over 5 years!

This is what I mean by dealer fit though. You want the nice alloy wheels? Buy the car for <£40k, drive it around the block, come back to the dealer and buy and fit a set of wheels.

[matfitzpatrick]

I see what you mean Carl... the running boards on the Mrs Disco Sport were a dealer after thought so didnt form part of the invoice value on the car. Maybe the likes of BMW will create the 'off the shelf' M Sport package, or S-Line package etc. I'm sure they've been working on the 'loop holes' for the retailers since this was announced by the Gov.