VED over £40,000

[Bluemondy]

Hoping to get some clarification here:

Ordered a Tuscan Ultimate Hybrid which has a list price <£40k

Optional tech pack & metallic paint puts the price at approx £40,125

Facebook says I'll be stung for the higher rate for the next 5 years.
Dealer says otherwise!

Little worried that for the sake of £126 I'm going to be penalised an additional £355 per year for 5 years!!

Anyone know the exact position?

Thanks.

[SteBrown91]

The 40k VED is based on the car price including VAT not the on the road price, so I think you can take the on the road price and remove the first year VED and delivery fee (and possibly something else). Not 100% if that’s correct but sure I read that somewhere.

[MDMA .]

https://www.nextgreencar.com/car-tax/make-model/hy...

[craig1912]

MDMA . said:

https://www.nextgreencar.com/car-tax/make-model/hy...

Doesn’t take into account optional extras

[Tall_Blk]

You will be paying an extra £365 in tax for cars over with a list price of over £40000 and that includes optional extras.

[parabolica]

It’s based on the list price which includes RRP, cost of options, VAT, delivery charges and the cost of battery if electric.

https://www.buyacar.co.uk/cars/209/car-tax-rates

My V60 RRP was <£40k but with options it pushed it over and I’ve been paying the higher rate. Same would apply to you OP.

[samoht]

Included:
- car list price
- VAT
- any options

Not included:
- any discount negotiated
- road tax & registration fee

So yes it's very possible to tip a £39k car into the luxury bracket with a few options, but as said you can subtract first year road tax, which is often quite a chunk and is included in the OTR price.

[Bluemondy]

samoht said:

Included:
- car list price
- VAT
- any options

Not included:
- any discount negotiated
- road tax & registration fee

So yes it's very possible to tip a £39k car into the luxury bracket with a few options, but as said you can subtract first year road tax, which is often quite a chunk and is included in the OTR price.

Dealer was absolutely certain I'll be ok...

As soon as the sales order is sent to me I'll upload it here for further details!

Thanks to everyone so far, it's thoroughly appreciated.

[lornemalvo]

Bluemondy said:

samoht said:

Included:
- car list price
- VAT
- any options

Not included:
- any discount negotiated
- road tax & registration fee

So yes it's very possible to tip a £39k car into the luxury bracket with a few options, but as said you can subtract first year road tax, which is often quite a chunk and is included in the OTR price.

Dealer was absolutely certain I'll be ok...

As soon as the sales order is sent to me I'll upload it here for further details!

Thanks to everyone so far, it's thoroughly appreciated.

I would ask the dealer to confirm this by return email. If you cop for the extra tax you will have a decent claim to be compensated, I would have thought. I would take nothing for granted if verbal assurance only.

[JulietRomeo]

May as well ask for the compensation to be agreed to int that same writing.

[Bluemondy]

lornemalvo said:

I would ask the dealer to confirm this by return email. If you cop for the extra tax you will have a decent claim to be compensated, I would have thought. I would take nothing for granted if verbal assurance only.

That is my exact though. As soon as the order email comes in, I shall return asking for that to be clarified & confirmed.

As you say, should it go sideways I'd be looking to recoup that money.

In this scenario, I'd live with the car in the standard solid red paint rather than pay that much tax! Utterly Bananas

[MarkJS]

lornemalvo said:

Bluemondy said:

samoht said:

Included:
- car list price
- VAT
- any options

Not included:
- any discount negotiated
- road tax & registration fee

So yes it's very possible to tip a £39k car into the luxury bracket with a few options, but as said you can subtract first year road tax, which is often quite a chunk and is included in the OTR price.

Dealer was absolutely certain I'll be ok...

As soon as the sales order is sent to me I'll upload it here for further details!

Thanks to everyone so far, it's thoroughly appreciated.

I would ask the dealer to confirm this by return email. If you cop for the extra tax you will have a decent claim to be compensated, I would have thought. I would take nothing for granted if verbal assurance only.

This.

[Pica-Pica]

MarkJS said:

lornemalvo said:

Bluemondy said:

samoht said:

Included:
- car list price
- VAT
- any options

Not included:
- any discount negotiated
- road tax & registration fee

So yes it's very possible to tip a £39k car into the luxury bracket with a few options, but as said you can subtract first year road tax, which is often quite a chunk and is included in the OTR price.

Dealer was absolutely certain I'll be ok...

As soon as the sales order is sent to me I'll upload it here for further details!

Thanks to everyone so far, it's thoroughly appreciated.

I would ask the dealer to confirm this by return email. If you cop for the extra tax you will have a decent claim to be compensated, I would have thought. I would take nothing for granted if verbal assurance only.

This.

Just get the dealer to itemise the costs and then to add the first year VED (which AIU is not included in the list price). By now you should have a written cost.

[Bluemondy]

Pica-Pica said:

MarkJS said:

lornemalvo said:

Bluemondy said:

samoht said:

Included:
- car list price
- VAT
- any options

Not included:
- any discount negotiated
- road tax & registration fee

So yes it's very possible to tip a £39k car into the luxury bracket with a few options, but as said you can subtract first year road tax, which is often quite a chunk and is included in the OTR price.

Dealer was absolutely certain I'll be ok...

As soon as the sales order is sent to me I'll upload it here for further details!

Thanks to everyone so far, it's thoroughly appreciated.

I would ask the dealer to confirm this by return email. If you cop for the extra tax you will have a decent claim to be compensated, I would have thought. I would take nothing for granted if verbal assurance only.

This.

Just get the dealer to itemise the costs and then to add the first year VED (which AIU is not included in the list price). By now you should have a written cost.

You'd think so wouldn't you! No Order confirmation, and as it's after 1700 I'm guessing it will be Monday now. No major issue. Car's unlikely to be delivered before April 2023!

[buyer&seller]

Bluemondy said:

You'd think so wouldn't you! No Order confirmation, and as it's after 1700 I'm guessing it will be Monday now. No major issue. Car's unlikely to be delivered before April 2023!

You might give some thought to the possibility of a manufacturers price increase before the car gets delivered.

[niva441]

You would think that they would understand how this system works by now, it's been in place for about 3 years now.

[Pica-Pica]

[quote=buyer&seller]

Bluemondy said:

You'd think so wouldn't you! No Order confirmation, and as it's after 1700 I'm guessing it will be Monday now. No major issue. Car's unlikely to be delivered before April 2023!

You might give some thought to the possibility of a manufacturers price increase before the car gets delivered.

Or to who the new chancellor might be (or even the governing party).

[Bluemondy]

Pica-Pica said:

[quote=buyer&seller]

Bluemondy said:

You'd think so wouldn't you! No Order confirmation, and as it's after 1700 I'm guessing it will be Monday now. No major issue. Car's unlikely to be delivered before April 2023!

You might give some thought to the possibility of a manufacturers price increase before the car gets delivered.

Or to who the new chancellor might be (or even the governing party).

True. I mean, it's not a total deal breaker. But I'd rather not keep giving Rishi (or whatever the fk it is this week) big piles of my cash!

If things totally outside my control happen, then I can take a view.

But paying £355 a year tax because I'm £126 over the limit is, frankly, mental.

[blank]

As above, you can remove the first year VED and registration fee for the "£40k" calculation. So if the OTR price is just over then it's quite likely the "list price" is under.

However, it is the list price when it is registered, so sounds like you'll be paying the higher amount anyway as the list price will almost certainly go up before you get the car.

[DT1975]

Don't believe a word the sales guy says. I was shafted on this, strangely the overwhelming response on here and elsewhere was that I was the muppet for not doing my homework (four years back).

The argument was that if you can afford a £40k plus car you can afford £300 extra or whatever it is a year. My sales guy said it was 'a couple of Costas a week' ...slippery, slimy git.

With me it was the 'principal' like you I guess...so if in doubt bail out as no way will a dealership honour some kind of assurance when you go to collect it and they punch the figures into the computer on hand over day.