VED from 2017 - £320 surcharge for 5 years

[BMW A6]

Reading What Car recently, an article about VED for cars registered after April 2017 costing ≥£40k, will have to pay £145 + £320 surcharge, bumping VED annual costs to £465.

£320 extra over 5 years, amounts to £1600. Ouch.

My question is........

........will this have impact on residuals for cars registered pre and post April 2017?

I for one, would now avoid a late 2017 car on the used market, preferring a 2015 or 2016 model.

[jjr1]

It is a bit of a weird conundrum as people are obsessed with the cost of taxing a car. Every car I have ever sold, one of the first questions has been, 'how much does it cost to tax?'

Who cares? The only thing I consider is my likely depreciation, which will in most cases make the tax look like pocket change.

The obsession of buyers over tax and mpg is likely because they feel the pain of handing the money over but depreciation is hugely more significant as a cost but invisible to most.

[No ideas for a name]

I swapped from a 2015 registered car to an identical but 2017 registered car and it was a little annoying that the tax went up. However, in the overall cost, it isn't that significant. Only another 4 years and it will go down - unless further tax changes come in!

[Auto810graphy]

Depends what you are looking to buy. The changes had more effect on diesels as the old system was CO2 based. Most performance cars are now slightly cheaper, 5.0 Mustang is one that springs to mind.

There were also a lot of cars registered March 2017 as the increase was also on the first registration fee and from memory in some cases registering in March saved nearly £2k plus the lower road fund.

[livinginasia]

Auto810graphy said:

Depends what you are looking to buy. The changes had more effect on diesels as the old system was CO2 based. Most performance cars are now slightly cheaper, 5.0 Mustang is one that springs to mind.

There were also a lot of cars registered March 2017 as the increase was also on the first registration fee and from memory in some cases registering in March saved nearly £2k plus the lower road fund.

I guess those cars bought on leases and PCPs in March 2017 will be coming available for sale on the second hand market in March / April / May time, I wonder what the good bargains will be? If any?

[Scootersp]

BMW A6 said:

Reading What Car recently, an article about VED for cars registered after April 2017 costing ?£40k, will have to pay £145 + £320 surcharge, bumping VED annual costs to £465.

£320 extra over 5 years, amounts to £1600. Ouch.

My question is........

........will this have impact on residuals for cars registered pre and post April 2017?

I for one, would now avoid a late 2017 car on the used market, preferring a 2015 or 2016 model.

Not sure it will have too much effect at these early stages, but when the late 2017 car is free of the surcharge it's tax will be a lot cheaper than the older models (forever more and not just 5 years) , so I think at that point you could see the early ones suffer a lot. Older cars and with a much higher annual tax. I agree it shouldn't make a huge difference but it does influence people, perhaps as its a one off and fixed cost, so for a second weekend car it can be quite a percentage of the annual cost?

[tickedon]

Scootersp said:

Not sure it will have too much effect at these early stages, but when the late 2017 car is free of the surcharge it's tax will be a lot cheaper than the older models (forever more and not just 5 years) , so I think at that point you could see the early ones suffer a lot. Older cars and with a much higher annual tax. I agree it shouldn't make a huge difference but it does influence people, perhaps as its a one off and fixed cost, so for a second weekend car it can be quite a percentage of the annual cost?

My Audi A4 is £20pa. Registered a month later in the wrong spec, it’d be £140pa + £320pa. And both of those amounts are being increased annually by inflation (the sub £30 rates seem to have escaped so far). So it’s not the case that older cars will cost more! And indeed the fact my car’s tax is so cheap vs paying nearly £500pa If I got a newer one now is a huge reason I’ve not changed it!