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Car Tax

Mr_Pegs
Mr_Pegs Posts: 78 Forumite
Part of the Furniture 10 Posts Name Dropper Combo Breaker
Simple question I am considering selling my current car the car tax is £20.00 per year. I am looking at buying a 2019 Kia registered September 2019. The dealer stated the road tax is £150 per year. I asked the following 'will this price rise with increase is in line with RPI? or remain static? he replied no it will stay the same for as long as you have the vehicle!. I even called DVLA they couldn't give me an answer only asked the cars reg and said yes  £150.00 per year.Does anyone know will it rise or stay the same. Thank you in advance  
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Comments

  • Car_54
    Car_54 Posts: 8,947 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    It is entirely at the whim of the Chancellor of the Exchequer. No-one can give a definitive answer.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    EVERY car registered after April 2017 is £150/yr, unless it's electric (£0) or "alternative fuel" (£140).

    The last time EVERY car was £150 was 1999.

    So, yes, you can guarantee it's going to go up. VED has gone up with inflation, rounded to the nearest fiver, most years recently.
  • Mr_Pegs
    Mr_Pegs Posts: 78 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Thanks for the quick answers guess I can manage the £150 plus CPI cant carry on with the older car forever!. Just out of interest the £20.00 I currently pay with my pre April 2017 car hasn't changed in years will that now go up in line with CPI ? again Thanks  
  • daveyjp
    daveyjp Posts: 13,748 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    A year ago it was £145, its now £150, you can take from that what you will.
  • DrEskimo
    DrEskimo Posts: 2,463 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    Mr_Pegs said:
    Thanks for the quick answers guess I can manage the £150 plus CPI cant carry on with the older car forever!. Just out of interest the £20.00 I currently pay with my pre April 2017 car hasn't changed in years will that now go up in line with CPI ? again Thanks  
    RPI increase on £20 is less than £1. They seem to round to the nearest £5, so it's unlikely they will bother raising it for a long while.
  • tr7phil
    tr7phil Posts: 113 Forumite
    Sixth Anniversary 100 Posts Name Dropper
    AdrianC said:
    EVERY car registered after April 2017 is £150/yr, unless it's electric (£0) or "alternative fuel" (£140).

    The last time EVERY car was £150 was 1999.

    So, yes, you can guarantee it's going to go up. VED has gone up with inflation, rounded to the nearest fiver, most years recently.
    Unless the list price was £40,000 plus, in which case there is a £325 additional payment for years 2 - 6.
  • MinuteNoodles
    MinuteNoodles Posts: 1,176 Forumite
    1,000 Posts Name Dropper
    edited 17 August 2020 at 9:49AM
    If your finances are so precarious you're worrying about VED going up then you can't afford to run a car because how will you pay for any unforeseen costs? A new/nearly new car isn't a guarantee you won't have a repair bill, you could have a puncture and need a new tyre for example, the cost of which would exceed any annual increase in VED..
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    tr7phil said:
    AdrianC said:
    EVERY car registered after April 2017 is £150/yr, unless it's electric (£0) or "alternative fuel" (£140).

    The last time EVERY car was £150 was 1999.

    So, yes, you can guarantee it's going to go up. VED has gone up with inflation, rounded to the nearest fiver, most years recently.
    Unless the list price was £40,000 plus, in which case there is a £325 additional payment for years 2 - 6.
    Yes, there's a short-term premium on top of the base VED of £150.
  • At least with a Kia he has a warranty until 2026. Kia warranties are transferable to future owners.
  • sweetsand
    sweetsand Posts: 1,826 Forumite
    1,000 Posts Name Dropper
    Road tax is at the mercy of the clowns in number 10.
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