Car Tax - budgeting for

want2bmortgage3

I was planning on paying my car tax (renewal this month) on a 0% credit card and then paying it in instalments each month for the 6 months, therefore paying no interest. However I noticed , like many other things, there is a £2.50 charge for credit cards.

So I'm wondering how everybody else pays it? is it worth paying that fee to put it on a credit card? also do you go for 6 or 12 months if you are not sure how long you intend to keep the car? Is it hassle to get a refund if you end up selling it before 12 months?

Would like to hear your opinions and how you do things!

Mark_Hewitt

want2bmortgage3 wrote: »

I was planning on paying my car tax (renewal this month) on a 0% credit card and then paying it in instalments each month for the 6 months, therefore paying no interest. However I noticed , like many other things, there is a £2.50 charge for credit cards.

So I'm wondering how everybody else pays it? is it worth paying that fee to put it on a credit card? also do you go for 6 or 12 months if you are not sure how long you intend to keep the car? Is it hassle to get a refund if you end up selling it before 12 months?

Would like to hear your opinions and how you do things!

As my car is £20 a year it's no hassle at all! :rolleyes:

Back in the day when it was £140 then yes, I put it on the card and sucked up the charge. As far as I know getting a refund on the tax is just a matter of posting it back to the DVLA. But when selling a car a dealer / buyer will usually factor how much tax it has left on it as part of the sale price. So for the most part nobody has to do that.

BenL

I just pay by cheque or debit card, will be off on the last day of this month, or at least the friday as it is payday too.

The lady who sits next to me at work uses post office savings stamps for hers.

http://www.postoffice.co.uk/portal/po/jump2?catId=86500737&mediaId=19400174

want2bmortgage3

I dont know if my debit card could take that much of a hit this month. I want to be able to pay it monthly so its part of my monthly budget. Am I getting it the wrong way round and should pay in advance then start saving for the next 6 months each month from now?

epninety

BenL wrote: »

The lady who sits next to me at work uses post office savings stamps for hers.

... which costs about £1.90 (assuming 2.25% savings account interest, and ignoring income tax) over 12 months. Not so long ago, it cost a bit more!

Hintza

Do they still do 0% interest? Thought that was one of the reasons we were up !!!!!! creek without a paddle.

Bewtter to get into the savings habit for the next time.

Inactive

To be blunt, if you cannot afford to tax a car, can you honestly afford to run one?

What would happen if it needed any major repairs?

Sorry if that sounds harsh.

want2bmortgage3

No i probably cant but i need it for work, there is no other option. i have another post of my SOA which i will update soon as there are more things i've thought of. luckily father is a mechanic so the car keeps on going with minimal repairs. after all it is a volkswagen

flutterbyuk25

If you intend to keep the car, and will definatly pay off the tax during the 0% period then £2.50 charge isn't that bad.

A 12month disc is always better value than a 6month disc, as you pay an extra 10% admin charge for the 6 month disc (which is not refundable).

Refunding the disc is simple enough. Need form V14 - downloadable from www.direct.gov.uk/motoring and post back to DVLA with the disc. You get a refund for any complete months remaining on disc.

For the future you should set aside a set amount each month for your disc in a savings account or use the post office stamps scheme.

HTH

x