Luxury / Expensive car VED supplement
Discussion
Afternoon all.
Browsing the classifieds over the weekend and noticed that more and more cars are being caught by the luxury / expensive car supplement as it hasn t moved from the £40k threshold since its introduction. The cars themselves have been hit by the usual depreciation over the first 2-3 years but buying at this age still means a few more years of the annual £425 VED supplement and this figure is likely to increase with inflation every year.
As an example I was looking at a 2 year old Skoda Octavia VRS with metallic paint and this was over £40k when new.
There are rumours that the government is looking at increasing the £40k threshold but only for EV s.
Would the extra £425 / year put you off buying a new(ish) car? Personally I would really struggle to justify the extra cost but I also run an older MX-5 (£325 / year) and a motorcycle (£111 / year) so the total cost of VED would be over £1k for all 3 vehicles. First world problem I know.
Browsing the classifieds over the weekend and noticed that more and more cars are being caught by the luxury / expensive car supplement as it hasn t moved from the £40k threshold since its introduction. The cars themselves have been hit by the usual depreciation over the first 2-3 years but buying at this age still means a few more years of the annual £425 VED supplement and this figure is likely to increase with inflation every year.
As an example I was looking at a 2 year old Skoda Octavia VRS with metallic paint and this was over £40k when new.
There are rumours that the government is looking at increasing the £40k threshold but only for EV s.
Would the extra £425 / year put you off buying a new(ish) car? Personally I would really struggle to justify the extra cost but I also run an older MX-5 (£325 / year) and a motorcycle (£111 / year) so the total cost of VED would be over £1k for all 3 vehicles. First world problem I know.
Probably wouldn't put me off because aside of my main car I have an R53 Mini Cooper S which does at best 1000 miles a year as a road legal track car and the VEL on that is £430 per year, I wouldn't even value the car more than £1500. As you would be expect I Sorn it until it's needed.
I thought the government had only just started applying that to EVs. Previously they were exempt from that and VED.
Working from home we've 2 cars that spend most of their time on the drive and so I'd grudge paying the 'Luxury' VED supplement. So many cars fall into that bracket these days.
Working from home we've 2 cars that spend most of their time on the drive and so I'd grudge paying the 'Luxury' VED supplement. So many cars fall into that bracket these days.
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