1st April Car Tax Rise - Buy Now?
Discussion
With the car tax due to rise on the 1st April and ‘luxury’ car tax due on electric cars above £40k as well as on petrol and diesel cars is now the right time to buy? Will the cost of all cars increase as a knock on effect?
The first year tax rates will double: https://www.autotrader.co.uk/content/guides/here-a...
I normally buy nearly new cars so I don’t take the initial depreciation hit, I’ve had my current car for 4 years and it’s due a change. I’m inclined to stick with it for a while longer though.
This £40k+ additional tax has become a piss tax, a Golf GTi now commands the additional payment, if the majority of electric cars fall under that also surely sales will drop off?
The first year tax rates will double: https://www.autotrader.co.uk/content/guides/here-a...
I normally buy nearly new cars so I don’t take the initial depreciation hit, I’ve had my current car for 4 years and it’s due a change. I’m inclined to stick with it for a while longer though.
This £40k+ additional tax has become a piss tax, a Golf GTi now commands the additional payment, if the majority of electric cars fall under that also surely sales will drop off?
The £40k additional car tax will only impact new cars registered after 1st April 2025, so you can buy a used EV car in the future as long as registered before 31st March 2025 which wouldn't incur the tax for the first 5 years of its life.
I got a Honda e:Ny1 on one of the cheap PCP deals in September, this will be subject to £195 VED from its renewal, myself along with nearly all EV owners will SORN our EV cars in March for a couple of days and then re-tax them for 12 months @ £0, only then having to pay for the VED from March 2026...
I do appreciate that the Government need to fill the VED shortfall somehow, however, hitting new EV owners when they are trying to push everyone into EVs may not be the best way...
I got a Honda e:Ny1 on one of the cheap PCP deals in September, this will be subject to £195 VED from its renewal, myself along with nearly all EV owners will SORN our EV cars in March for a couple of days and then re-tax them for 12 months @ £0, only then having to pay for the VED from March 2026...
I do appreciate that the Government need to fill the VED shortfall somehow, however, hitting new EV owners when they are trying to push everyone into EVs may not be the best way...
Tophatron said:
No need to SORN, you can retax at any time with the V5.
It'll warn you about losing a month of tax, but as it's £0 (for the moment) that's irrelevant.
Best bang for your buck would be to renew on the 1st March, should then expire at the end of March 2026.
Didn't know you could do that, I'll try it in March.It'll warn you about losing a month of tax, but as it's £0 (for the moment) that's irrelevant.
Best bang for your buck would be to renew on the 1st March, should then expire at the end of March 2026.
Re taxing it again on 1st March, unfortunately it only brings it to 28 Feb 2026 as March 2026 would the 13 month...
Thanks for your guidance though
I got a Honda eNy1 in March 2024 so renew on 1st March anyway. 
But yes, you can buy VED again at any time on any vehicle with the V5c. On a car where there is a fee, this would obviously be daft, but when it's £0....
I wasn't aware they were doing great deals on the eNy1 in September too, I'd have pointed a couple of friends to it. They were incredulous about the early PCP deals when I told them, but they went very fast.
But yes, you can buy VED again at any time on any vehicle with the V5c. On a car where there is a fee, this would obviously be daft, but when it's £0....I wasn't aware they were doing great deals on the eNy1 in September too, I'd have pointed a couple of friends to it. They were incredulous about the early PCP deals when I told them, but they went very fast.
sixor8 said:
I got a Honda eNy1 in March 2024 so renew on 1st March anyway. But yes, you can buy VED again at any time on any vehicle with the V5c. On a car where there is a fee, this would obviously be daft, but when it's £0....
I wasn't aware they were doing great deals on the eNy1 in September too, I'd have pointed a couple of friends to it. They were incredulous about the early PCP deals when I told them, but they went very fast.
Sorry, we took delivery of our e:NY1 in September, from memory we ordered it around May/June time when they were doing the 0% and £11k discount on PCPs. But yes, you can buy VED again at any time on any vehicle with the V5c. On a car where there is a fee, this would obviously be daft, but when it's £0....I wasn't aware they were doing great deals on the eNy1 in September too, I'd have pointed a couple of friends to it. They were incredulous about the early PCP deals when I told them, but they went very fast.
1st March it will be re-taxed for 12 months!
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