Luxury car tax putting me off
Discussion
I've been looking at used cars, many less than a year old and want to pay low £20K s. I have seen some that appear very good value, BMWs etc. However, the 3 series is not what I would call a luxury car but many exceed the threshold of £40,000 when new. I asked about a couple of cars and their list price at Motorpoint and he knew I was asking about the luxury car tax. All exceeded the threshold. Whether he would have mentioned it to me voluntarily I'll never know. I suspect not until the paperwork had been signed. There is absolutely no way I'm paying an extra £1600 or so in tax over five years, it's never happening, so my choice is li ited to buying a cheaper list priced car or buying an older car that preceded the introduction of the tax. Please no comments about how insignificant the tax is in the scheme of things, it really isn't. I wouldn't buy a car that costs £500 a year to tax either
I just wonder how many car dealers are finding these "supertax" cars more difficult to sell
I just wonder how many car dealers are finding these "supertax" cars more difficult to sell
Well the legislation is having an effect.
Quite simple either stump up the extra to buy the car you want or don't and have a car you don't really want but was 'forced' on you.
I suspect that cars affected by the extra tax have already taken a hit in their value and without it probably would not be in your price range.
Swings and roundabouts...
Quite simple either stump up the extra to buy the car you want or don't and have a car you don't really want but was 'forced' on you.
I suspect that cars affected by the extra tax have already taken a hit in their value and without it probably would not be in your price range.
Swings and roundabouts...
I'm paying an extra £310 VED so.... £5.96 a week.on a car with a £47k list price.
I paid under £30K for it, pre reg and brand new. Its a farce but easily avoided - just ask for the list price, watch the salesman go quite vague and some colour drain from him slightly. Or look it up online. Some dealers are straight up.
Its a nice 3 litre, straight six that goes like snot with all the toys. I'd hate to pay that on a 2 litre diesel that snuck into that price range because of options. I disagree with it in principal as the list price is a manufactured figure that bears little resemblance to what people actually pay for a car.
I'll keep it three years, so thats £930 extra, I negotiated hard on the deal and saved far more than that on the screen price (not list). You could even factor that into a negotiating process.
Autotrader is littered with older average 2 litre cars that have a VED of £325/ £400 £555, I guess people avoid them in the same way that you can avoid the luxury tax.
I paid under £30K for it, pre reg and brand new. Its a farce but easily avoided - just ask for the list price, watch the salesman go quite vague and some colour drain from him slightly. Or look it up online. Some dealers are straight up.
Its a nice 3 litre, straight six that goes like snot with all the toys. I'd hate to pay that on a 2 litre diesel that snuck into that price range because of options. I disagree with it in principal as the list price is a manufactured figure that bears little resemblance to what people actually pay for a car.
I'll keep it three years, so thats £930 extra, I negotiated hard on the deal and saved far more than that on the screen price (not list). You could even factor that into a negotiating process.
Autotrader is littered with older average 2 litre cars that have a VED of £325/ £400 £555, I guess people avoid them in the same way that you can avoid the luxury tax.
My 66 plate A4 is £20 per year to tax, my mate at work has a 17 plate one the same but the 190 quattro with a few more options and pays the high rate. I couldn't justify paying £500 per year nearly for a 2.0 diesel personally, my dad wanted to replace his 14 plate Evoque with another one but will probably go for a Q3 now to avoid the luxury car tax as it sneaks just under the threshold in his desired spec.
doog442 said:
I'm paying an extra £310 VED so.... £5.96 a week.on a car with a £47k list price.
I paid under £30K for it, pre reg and brand new. Its a farce but easily avoided - just ask for the list price, watch the salesman go quite vague and some colour drain from him slightly. Or look it up online. Some dealers are straight up.
Its a nice 3 litre, straight six that goes like snot with all the toys. I'd hate to pay that on a 2 litre diesel that snuck into that price range because of options. I disagree with it in principal as the list price is a manufactured figure that bears little resemblance to what people actually pay for a car.
I'll keep it three years, so thats £930 extra, I negotiated hard on the deal and saved far more than that on the screen price (not list). You could even factor that into a negotiating process.
Autotrader is littered with older average 2 litre cars that have a VED of £325/ £400 £555, I guess people avoid them in the same way that you can avoid the luxury tax.
That used to be a tactic employed by life insurance salesmen " it only costs £6 a week , or "so many cups of coffee". People with that attitude to money often struggle to manage money (not suggesting that you do at all, it doesn't sound like it). My take on it is that it's £310 out of annual income net of tax, so it's close to £400 out of a salary, or over £500 for a higher rate earner. It's not insignificant for an "extra" tax. These are not luxury cars either but what could be described as decent sales reps' cars. It's a personal thing and it won't bother everyone but for me, it really goes against the grainI paid under £30K for it, pre reg and brand new. Its a farce but easily avoided - just ask for the list price, watch the salesman go quite vague and some colour drain from him slightly. Or look it up online. Some dealers are straight up.
Its a nice 3 litre, straight six that goes like snot with all the toys. I'd hate to pay that on a 2 litre diesel that snuck into that price range because of options. I disagree with it in principal as the list price is a manufactured figure that bears little resemblance to what people actually pay for a car.
I'll keep it three years, so thats £930 extra, I negotiated hard on the deal and saved far more than that on the screen price (not list). You could even factor that into a negotiating process.
Autotrader is littered with older average 2 litre cars that have a VED of £325/ £400 £555, I guess people avoid them in the same way that you can avoid the luxury tax.
gottans said:
Well the legislation is having an effect.
Quite simple either stump up the extra to buy the car you want or don't and have a car you don't really want but was 'forced' on you.
I suspect that cars affected by the extra tax have already taken a hit in their value and without it probably would not be in your price range.
Swings and roundabouts...
That is a good point, some of the cars at the car supermarkets seem really good value, although main dealers prices are still too high for this to be a possibilityQuite simple either stump up the extra to buy the car you want or don't and have a car you don't really want but was 'forced' on you.
I suspect that cars affected by the extra tax have already taken a hit in their value and without it probably would not be in your price range.
Swings and roundabouts...
We've started similar threads albeit at different ends of the car buying spectrum.
I think if I was in your position I'd be tempted to go further upmarket but older. Doesn't this tax finish at 5 years? What about a 7 series in the same budget. Yes it might cost more to run and maintain but to me that's somehow more palatable.
I think if I was in your position I'd be tempted to go further upmarket but older. Doesn't this tax finish at 5 years? What about a 7 series in the same budget. Yes it might cost more to run and maintain but to me that's somehow more palatable.
gottans said:
ambuletz said:
let me get this straight...you still pay this tax even if the car is used? so if a car cost over £40 new.. and you buy it used 4-5 years later when its under £20..you still pay it?
Yes.gottans said:
ambuletz said:
let me get this straight...you still pay this tax even if the car is used? so if a car cost over £40 new.. and you buy it used 4-5 years later when its under £20..you still pay it?
Yes.JohndoePH said:
You pay it for 5 years after the initial year so essentially the car has to be 6 years old before the higher rate goes away. The initial year tax is also a sight to behold these days, maxes out at over £2k.
It makes PCH really expensive and also for those asking where are these M5 etc stunning deals that used to happen.... well they never will again due to this tax change (unless it’s £39,999 optioned up and AT LIST price not what you haggle) Gassing Station | Car Buying | Top of Page | What's New | My Stuff