New rules for UK car tax

[stripey]

I've just seen that from April 2017 it's very likely that new PHEV sales in the UK will plummet.

Whereas now we all bask in the warmth of a £0 VED rate, this will all change in April. £0 in perpetuity will in future only be available for genuine zero-emission cars. All other cars are charged a first year rate that is related to CO2 emissions. This ranges from £10 to £2000. After that first year, all cars except zero-emission models are charged £140. In addition to this, new cars with a list price of over £40000 attract additional VED of £310 per year for five years.

The Government claims that because an increasing number of vehicles currently pay no VED that this is weakening the environmental signal. They also mention "sustainability" - I guess they want to increase income.

Thankfully, current owners are not affected by this change, but if you are planning to get an EV this year, buy it before All Fools' Day this year.

 

[greendwarf]

I've just seen that from April 2017 it's very likely that new PHEV sales in the UK will plummet.

Really? - I doubt that VED is a significant factor when buying a new car :?:

 

[maby]

I've just seen that from April 2017 it's very likely that new PHEV sales in the UK will plummet.

Really? - I doubt that VED is a significant factor when buying a new car :?:

The additional £310 per annum for cars over £40,000 could impact on sales of the 4HS and above. The difference between zero and £140 per annum is probably not a significant factor, but it does remove a useful marketing headline. I wonder if TfL are going to follow suit with the Congestion Charge?

 

[greendwarf]

I've just seen that from April 2017 it's very likely that new PHEV sales in the UK will plummet.

Really? - I doubt that VED is a significant factor when buying a new car :?:

The additional £310 per annum for cars over £40,000 could impact on sales of the 4HS and above. The difference between zero and £140 per annum is probably not a significant factor, but it does remove a useful marketing headline. I wonder if TfL are going to follow suit with the Congestion Charge?

Agree about marketing points but would £310 make a real difference if paying out £40k - TFL seem more concerned (quite rightly IMHO) in diesels with planned "extra" costs for both Congestion Charge and parking. There are still too few EVs or PHEVs used in Central London to make a significant dent in income from these sources when compared with the potential for squeezing all the diesels. :lol:

 

[Muddywheels]

I do find it odd that one minute were being told buy low emission vehicles to save the environment and the next charged more for them because they want more money

I could understand if they put charges up on polluting vehicles or better still abolished rfl/VED and put it all on fuel but all they're really doing is looking for ways to tax people who have more money - they're the ones who buy newer cleaner cars after all

It does seem ridiculous that if I buy a diesel shogun after April I will be better off but if I buy a 4HS phev I will be worse

 

[oldman]

I believe that Mitsubishi UK recently dropped some prices slightly, probably because of this change.

Before, the latest 4h, with metallic paint, came in at £40,004 and now it is just below the £40,000 threshold.

 

[Muddywheels]

I wouldn't go above 4h next time to avoid price jump for not much benefit

I think 4H will be most popular model

 

[stripey]

I do find it odd that one minute were being told buy low emission vehicles to save the environment and the next charged more for them because they want more money

I could understand if they put charges up on polluting vehicles or better still abolished rfl/VED and put it all on fuel but all they're really doing is looking for ways to tax people who have more money - they're the ones who buy newer cleaner cars after all

It does seem ridiculous that if I buy a diesel shogun after April I will be better off but if I buy a 4HS phev I will be worse

Exactly.

 

[Dusz]

For the past 20 years or so successive governments have pushed the target for low CO2. Now within a very short period diesel is becoming a dirty word, or should I say diesel for cars is becoming a dirty word. What about vans, taxis, lorries and buses?
Less than two months ago there was a report that Oxford St in London was way over the threshold set by the EU for air cleanliness. The thing is that on that stretch cars are not allowed so the pollution was down to the taxis and busses.
All the hype is intended to provide the "evidence" to justify increased local and national taxation. If they truly wanted increased take up of low emission they would retain incentives.
For the future I might remain hybrid for one car and get a tax exempt classic, a nice Scimitar GTE with a 3 litre Essex V6 might be nice.

 

[ChrisMiller]

a nice Scimitar GTE with a 3 litre Essex V6 might be nice.

My first 'proper' car was a 1969 Scimitar I bought from my dad in 1975. Happy days, just don't get me started on the automatic choke!

 

[greendwarf]

It does seem ridiculous that if I buy a diesel shogun after April I will be better off but if I buy a 4HS phev I will be worse

As I read it the Shogun is £1700 for the first year and £140 after that against the 4HS costing £310 for 5 years - how is that cheaper?

 

[Muddywheels]

As I understand it the 4hs will be £450 pa and the Shogun will be £140 https://www.carwow.co.uk/guides/choosing/cars-with-cheaper-more-expensive-road-tax-in-2017

 

[greendwarf]

As I understand it the 4hs will be £450 pa and the Shogun will be £140 https://www.carwow.co.uk/guides/choosing/cars-with-cheaper-more-expensive-road-tax-in-2017

Sorry I missed that the £310 is an "extra" charge on top of the £130 = £440 but according to the official gov.uk web-site https://www.gov.uk/vehicle-tax-rate-tables/vehicles-registered-on-or-after-1-april-2017 there is no "first year" charge for PHEV (44 CO2). So PHEV is 0 + 5*440 = £2200 and Shogun is 1700 + 5*140 = £2400 over first 6 years i.e. £200 more with the bulk front loaded. So PHEV is still cheaper to buy :mrgreen:

 

[Muddywheels]

The point is it's currently free but it won't be after April and it's not cheaper to buy - a top of range Shogun SWB which would suit my needs is £35k before discount including 1st year RFL/VED but a range topping phev is £43.5k plus another £310 pa RFL/VED - the difference would more than cover extra fuel costs

I stand by my OP it's a joke

 

[greendwarf]

The point is it's currently free but it won't be after April and it's not cheaper to buy - a top of range Shogun SWB which would suit my needs is £35k before discount including 1st year RFL/VED but a range topping phev is £43.5k plus another £310 pa RFL/VED - the difference would more than cover extra fuel costs

I stand by my OP it's a joke

So your point is really the difference in list price not the VED because the gov't is doing what you want on this by hammering the Shogun at point of sale with £1700. :roll:

 

[Muddywheels]

:?

When I buy a new car I never ask what the 1st year VED is - I'm interested in what the OTR price is and what discount is available - next I want to know what VED is for the time I will own it and anyone buying used will also be asking this :roll:

I'm a phev Newbie and the free VED helped me take the plunge - I don't want to pay £450 pa VED especially if it's costing me more to buy in the 1st place than something like a shogun - I was only paying £45 more for my 3.0 SDV6 Range Rover Sports :shock:

I'm happy with the phev but come time to change things just got more complicated for me from April - that's my point

 

[maby]

The point is it's currently free but it won't be after April and it's not cheaper to buy - a top of range Shogun SWB which would suit my needs is £35k before discount including 1st year RFL/VED but a range topping phev is £43.5k plus another £310 pa RFL/VED - the difference would more than cover extra fuel costs

I stand by my OP it's a joke

So your point is really the difference in list price not the VED because the gov't is doing what you want on this by hammering the Shogun at point of sale with £1700. :roll:

I would argue that the Shogun is the better car and the Outlander needs the tax concessions in order to make it attractive.

 

[Muddywheels]

I didn't want to post that on an Outlander forum but I thought so too - bit like paying more for a Freelander/Discovery Sport than a Discovery imho

 

[greendwarf]

I would argue that the Shogun is the better car and the Outlander needs the tax concessions in order to make it attractive.

Not if you want daily non-pollution inner city driving - as I have stated endlessly, the PHEV is a city car, the Shogun is not :roll: You'll be telling me next that washing machines are better electrical white goods than fridges :lol:

 

[maby]

I would argue that the Shogun is the better car and the Outlander needs the tax concessions in order to make it attractive.

Not if you want daily non-pollution inner city driving - as I have stated endlessly, the PHEV is a city car, the Shogun is not :roll: You'll be telling me next that washing machines are better electrical white goods than fridges :lol:

Of course not, but the question then becomes is there a sufficient inner-city market for a £40,000 large estate car to justify running an expensive production line? I doubt it, and Mitsubishi don't seem convinced either - all the PHEV adverts show it in wild open country settings, not going round Piccadilly Circus. The PHEV needs to appeal to people living in the Home Counties who would otherwise be buying Freelanders, RAV4s and other soft-road estate cars if it is going to keep the sales volumes high enough to justify building it.