New Road Tax Price Increase!

AdrianC

Penelopa.Pitstop said:

It's VED increase at first registration. Car went a few bands up due to new WLTP emission numbers. According to BMW forum, it was £775 that was requested to be paid before lease start, due to VED change.

Yes, exactly. The band has not changed by £775. The car has changed band. The band payable is the band applicable at first reg date.

bery_451

Car_54 said:

bery_451 said:

Penelopa.Pitstop said:

£45 is nothing. Some customers were asked to pay extra £750, because VED went up after 1st of April. They expected to collect their cars before that date, but it didn't happen. I know of one broker, who agreed to cover half of the increase. Normally, VED is included in the lease, but if deal assumed delivery before 1st of April, increase in VED may not be included. If you agreed on deal with delivery after 1st of April, increase was already included in the price.

Its the owner of the cars that are legally liable for road tax.

if they breach the contract the contract becomes automatically void/cancelled.

1.  No. It's the keeper, not the owner, who is liable. [Vehicle Excise and Registration Act 1994, section 1(1(d))]

2.  No it doesn't. Try breaking a contract (e.g. stop paying your rent or mortgage) and see what happens. You'll  find the contract is not void, and the courts will happily enforce it.

Who is responsible for taxing a car?

The person who is responsible for the vehicle in terms of official communications from the police and the DVLA is known as the registered keeper, but the owner is the person who has paid for the car or was given it as a present.
https://www.dvla-contact-number.co.uk/the-differences-between-the-registered-keeper-and-owner-of-a-vehicle/

The renter of the lease car is not the registered keeper because the V5 Logbook is not registered in the renter's name.

So you telling me if I go to Enterprise rent a car today to hire a car for a day I am liable to pay road tax for that day?

Car_54

bery_451 said:

Car_54 said:

bery_451 said:

Penelopa.Pitstop said:

£45 is nothing. Some customers were asked to pay extra £750, because VED went up after 1st of April. They expected to collect their cars before that date, but it didn't happen. I know of one broker, who agreed to cover half of the increase. Normally, VED is included in the lease, but if deal assumed delivery before 1st of April, increase in VED may not be included. If you agreed on deal with delivery after 1st of April, increase was already included in the price.

Its the owner of the cars that are legally liable for road tax.

if they breach the contract the contract becomes automatically void/cancelled.

1.  No. It's the keeper, not the owner, who is liable. [Vehicle Excise and Registration Act 1994, section 1(1(d))]

2.  No it doesn't. Try breaking a contract (e.g. stop paying your rent or mortgage) and see what happens. You'll  find the contract is not void, and the courts will happily enforce it.

Who is responsible for taxing a car?

The person who is responsible for the vehicle in terms of official communications from the police and the DVLA is known as the registered keeper, but the owner is the person who has paid for the car or was given it as a present.
https://www.dvla-contact-number.co.uk/the-differences-between-the-registered-keeper-and-owner-of-a-vehicle/

The renter of the lease car is not the registered keeper because the V5 Logbook is not registered in the renter's name.

So you telling me if I go to Enterprise rent a car today to hire a car for a day I am liable to pay road tax for that day?

The precise wording of the Act is "Vehicle excise duty charged in respect of a vehicle by subsection (1)(b) or (1A)(b) shall be paid on a licence to be taken out by the person keeping the vehicle"

There is a difference between the Registered Keeper and "the person keeping the vehicle". The law takes the commonsense view that, in your example, Enterprise is that keeper, not you.

molerat

All of which is pretty much irrelevant.  Whether buying or leasing it is a contractual matter between the two parties over who is going to have to come up with the cash.  But as the driver is able to register the vehicle in the disabled class none of the payments, including standard VED, first registration premium and £40K+ premium, are required as long as they do as set out in the relevant .gov pages.

452

bery_451 said:

Penelopa.Pitstop said:

£45 is nothing. Some customers were asked to pay extra £750, because VED went up after 1st of April. They expected to collect their cars before that date, but it didn't happen. I know of one broker, who agreed to cover half of the increase. Normally, VED is included in the lease, but if deal assumed delivery before 1st of April, increase in VED may not be included. If you agreed on deal with delivery after 1st of April, increase was already included in the price.

Its the owner of the cars that are legally liable for road tax. Were not the legal owners of leased cars. Where does it say on the contract? If you can show proof where it says customer is liable for tax changes/increases? I cant see it on a contract and if they breach the contract the contract becomes automatically void/cancelled. No way the customer should be liable for any charges/losses in any marketplace due to the virus pandemic as its not like we customers caused the outbreak to begin with. Because this pandemic is something out of our control so we should not be liable.

£45 can full tank a car with petrol and £45 for most people is a lot of money. 

If £45 is a lot of money to you then maybe you should stop having new cars. 

bery_451

Car_54 said:

bery_451 said:

Car_54 said:

bery_451 said:

Penelopa.Pitstop said:

£45 is nothing. Some customers were asked to pay extra £750, because VED went up after 1st of April. They expected to collect their cars before that date, but it didn't happen. I know of one broker, who agreed to cover half of the increase. Normally, VED is included in the lease, but if deal assumed delivery before 1st of April, increase in VED may not be included. If you agreed on deal with delivery after 1st of April, increase was already included in the price.

Its the owner of the cars that are legally liable for road tax.

if they breach the contract the contract becomes automatically void/cancelled.

1.  No. It's the keeper, not the owner, who is liable. [Vehicle Excise and Registration Act 1994, section 1(1(d))]

2.  No it doesn't. Try breaking a contract (e.g. stop paying your rent or mortgage) and see what happens. You'll  find the contract is not void, and the courts will happily enforce it.

Who is responsible for taxing a car?

The person who is responsible for the vehicle in terms of official communications from the police and the DVLA is known as the registered keeper, but the owner is the person who has paid for the car or was given it as a present.
https://www.dvla-contact-number.co.uk/the-differences-between-the-registered-keeper-and-owner-of-a-vehicle/

The renter of the lease car is not the registered keeper because the V5 Logbook is not registered in the renter's name.

So you telling me if I go to Enterprise rent a car today to hire a car for a day I am liable to pay road tax for that day?

The precise wording of the Act is "Vehicle excise duty charged in respect of a vehicle by subsection (1)(b) or (1A)(b) shall be paid on a licence to be taken out by the person keeping the vehicle"

There is a difference between the Registered Keeper and "the person keeping the vehicle". The law takes the commonsense view that, in your example, Enterprise is that keeper, not you.

Exactly the drivers of leased cars are not keepers like you said Enterprise is the keeper and so are leasing companies so they should be liable to Road tax.

molerat

There is little or no relationship between who is responsible for paying it and who is actually going to have to come up the cash.  It is purely a contractual matter between the two parties and if the garage / lease co say you have to pay it they are not going to release the car until you do. When I bought my last car the VED was listed separately on the invoice, the garage had paid it but I had to reimburse them for that cost.  It is generally accepted that any increase in a tax is picked up by the end user and there is usually a term in the contract covering that.  But as I said if it is to be taxed in the disabled class there is nothing to pay anyway.

bery_451

Leasing company got back by email stating they cannot accept Road Tax Exemption Certificate because I wont be buying the car after the lease contract. Sounds right  ?

bery_451

Hi coming back to this thread is lease company right?

Penelopa.Pitstop

Lease company is correct, they buy the car and they will be owner and registered keeper, so customer Road Tax exemption is not relevant. If it was PCP, than exemption could be applied. But I'm not sure it would work on VED at first registration, probably only on subsequent payments.