New car - 12 months Road Fund Licence
Discussion
Hi all,
I have a new car on order, but unfortunately it looks like the delivery will happen at the same time as my garage is getting rebuilt.
Therefore I may put the car into storage for the first few months, annoying but just bad timing.
I assume I can avoid the 12 months Road Fund Licence if I put it directly into storage?
But do you end up paying the full amount if you put back on the road within the first 12 months anyway???
Has anybody else been in a similar position / done this?
Thanks!!
I have a new car on order, but unfortunately it looks like the delivery will happen at the same time as my garage is getting rebuilt.
Therefore I may put the car into storage for the first few months, annoying but just bad timing.
I assume I can avoid the 12 months Road Fund Licence if I put it directly into storage?
But do you end up paying the full amount if you put back on the road within the first 12 months anyway???
Has anybody else been in a similar position / done this?
Thanks!!
If they will deliver the car to you unregistered, then you will not pay any road tax until you register it. Whether it is then straightforward to register the car is another matter. The DVLA claim that they might have to inspect the car, so you would have to trailer it to them. Whether they really would want to inspect it is another matter.
If you are planning to let the dealer register the car, then SORN it immediately, lose that month, reclaim the other 11 months and then register it at a future date and only pay the lower 2nd year rate, because it is not the first time that the car has been registered and thus save yourself some money, sadly, and unsurprisingly, the DVLA have thought of this!
This is what they say:
Refund for the first tax payment on the vehicle:
The amount you get back will be based on whichever is lower of:
the first tax payment when you registered the vehicle
the rate for the second tax payment onwards
So if you do it in Month 1, they will only refund you 11 months at the 2nd year rate, and not the 1st year rate, and keep the difference, so that they don't lose out! When you then tax it, you will pay the 2nd year rate as you will already have paid the 1st year rate and not even driven the car!
If you are planning to let the dealer register the car, then SORN it immediately, lose that month, reclaim the other 11 months and then register it at a future date and only pay the lower 2nd year rate, because it is not the first time that the car has been registered and thus save yourself some money, sadly, and unsurprisingly, the DVLA have thought of this!
This is what they say:
Refund for the first tax payment on the vehicle:
The amount you get back will be based on whichever is lower of:
the first tax payment when you registered the vehicle
the rate for the second tax payment onwards
So if you do it in Month 1, they will only refund you 11 months at the 2nd year rate, and not the 1st year rate, and keep the difference, so that they don't lose out! When you then tax it, you will pay the 2nd year rate as you will already have paid the 1st year rate and not even driven the car!
LucyP said:
If they will deliver the car to you unregistered, then you will not pay any road tax until you register it. Whether it is then straightforward to register the car is another matter. The DVLA claim that they might have to inspect the car, so you would have to trailer it to them. Whether they really would want to inspect it is another matter.
If you are planning to let the dealer register the car, then SORN it immediately, lose that month, reclaim the other 11 months and then register it at a future date and only pay the lower 2nd year rate, because it is not the first time that the car has been registered and thus save yourself some money, sadly, and unsurprisingly, the DVLA have thought of this!
This is what they say:
Refund for the first tax payment on the vehicle:
The amount you get back will be based on whichever is lower of:
the first tax payment when you registered the vehicle
the rate for the second tax payment onwards
So if you do it in Month 1, they will only refund you 11 months at the 2nd year rate, and not the 1st year rate, and keep the difference, so that they don't lose out! When you then tax it, you will pay the 2nd year rate as you will already have paid the 1st year rate and not even driven the car!
Thanks for the information!If you are planning to let the dealer register the car, then SORN it immediately, lose that month, reclaim the other 11 months and then register it at a future date and only pay the lower 2nd year rate, because it is not the first time that the car has been registered and thus save yourself some money, sadly, and unsurprisingly, the DVLA have thought of this!
This is what they say:
Refund for the first tax payment on the vehicle:
The amount you get back will be based on whichever is lower of:
the first tax payment when you registered the vehicle
the rate for the second tax payment onwards
So if you do it in Month 1, they will only refund you 11 months at the 2nd year rate, and not the 1st year rate, and keep the difference, so that they don't lose out! When you then tax it, you will pay the 2nd year rate as you will already have paid the 1st year rate and not even driven the car!
I thought it couldn't be an easy thing to do....
To be honest I was just looking at what options I have, as I can't garage (and use) the car for the first couple of months,
but it sounds like I will just have to register it and just have to put up with the car not being in my garage for a bit.
Oh well!
Appreciate the reply.
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