"Crippling VED"
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Discussion

J4CKO

Original Poster:

47,022 posts

231 months

Friday 20th September 2013
quotequote all
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.



Podie

46,649 posts

306 months

Friday 20th September 2013
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£210 more. In some cases that's 2 tanks of fuel.

CBR JGWRR

6,586 posts

180 months

Friday 20th September 2013
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And other cars it's more than the car cost to buy in the first place.

GroundEffect

13,864 posts

187 months

Friday 20th September 2013
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£490 for my Z4M too.

Just suck it up.


Truckosaurus

13,299 posts

315 months

Friday 20th September 2013
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J4CKO said:
Ok, very budget and mileage dependant but think it needs keeping in perspective as part of the total costs.
As I've said before, never under-estimate how much people are willing to spend to save money.

Howard-

4,964 posts

233 months

Friday 20th September 2013
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What hacks me off the most is that the VED bands can vary for the same car depending on its age. My 2004 Mondeo costs me about £280 to tax. A 2006 model which is EXACTLY THE SAME costs £475, because 2006 is some sort of cut-off year. It's actual bullst.

Superhoop

4,919 posts

224 months

Friday 20th September 2013
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That's hardly crippling - The RX-8 in Ireland is 2700 euro's a year

northwest monkey

6,370 posts

220 months

Friday 20th September 2013
quotequote all
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.

AudiWurst

4,814 posts

258 months

Friday 20th September 2013
quotequote all
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.

dave_s13

14,031 posts

300 months

Friday 20th September 2013
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Why can't VED be payable monthly, as per car insurance. It would make it a little more palatable that way I reckon.

The Oirish have it bad though, their VED system is boliks to be sure.

oyster

13,791 posts

279 months

Friday 20th September 2013
quotequote all
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.
But many people wouldn't have even replaced their previous car if it wasn't the for the false economy of a new diesel.

J4CKO

Original Poster:

47,022 posts

231 months

Friday 20th September 2013
quotequote all
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.
Maybe, but just seems strange, anyway petrol engines are on their way back, maybe not V6 4.5 litre ones, proper dinosaur but the little turbo ones are the latest flavour of the month, diesels have a slight backlash going on.

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


Engineer1

10,486 posts

240 months

Friday 20th September 2013
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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.

Ved

3,949 posts

206 months

Friday 20th September 2013
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....oh car tax. OK i won't have to avoid any dark alleys now.

Carry on.

All that jazz

7,632 posts

177 months

Friday 20th September 2013
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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. grumpy

Pommygranite

14,472 posts

247 months

Friday 20th September 2013
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Penny Smart. Pound Poor.

So many people do it. Worry about saving a few pence on fuel but are ignorant to purchase costs, VED, insurance, servicing, depreciation...

Kentish

15,169 posts

265 months

Friday 20th September 2013
quotequote all
Superhoop said:
That's hardly crippling - The RX-8 in Ireland is 2700 euro's a year
Fecking hell!

That is highway robbery!!!!

McFarnsworth

284 posts

180 months

Friday 20th September 2013
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The VED equivalent in Belgium for a 350Z would be around 1300 euros, still not nearly as bad as Ireland or the Netherlands, but compared to most European countries your 490 pounds are a bargain.

300bhp/ton

41,030 posts

221 months

Friday 20th September 2013
quotequote all
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.

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.

chrisw666

22,655 posts

230 months

Friday 20th September 2013
quotequote all
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.