Car Tax Anomalies

AdrianC

Why "for once in my life"?
What's the problem with buying 12mo at once? £67.50 difference between the two is a drop in the ocean compared to the running costs of a car - it's not even 60 litres of fuel, or the price of a single decent tyre for many cars.

Remember, too, any refund is calculated pro-rata on the basic £150 rate - so if you pay the £82.50 rate (£13.75/mo), you will get a refund at the £150 rate (£12.50/mo).

worid

Perhaps some people have more money than others. I am on a pension so I do watch what I can spend.  This is a pricey time of year for me, as well as the mortgage and general bills this month,  I have house insurance, car insurance, car tax, breakdown tax and TV licence.  I try to buy the insurances yearly.  I don't go on holiday and I don't eat out.  But because of Covid I have managed to inadvertently keep more in the bank, not buying clothes etc helps and I am lucky as my state pension is guaranteed.
I hardly use the car now except for shopping trips but I would not be without it as it gives me personal freedom.  Even when all of us can get out and about, I don't spend more then £30 a month on fuel. So perhaps the difference in price may be a drop in the ocean for some, but not for everyone and I think I manage quite well on less than £11,000 per year.

Jenni_D

Looking again at what has been posted, it seems that they are comparable purchases but the amount charged differs between the payment mechanisms. Is the DVLA exempt from the Consumer Rights (Payment Surcharges) Regulations?

facade

worid said:

 I will for once in my life buy a years worth for £150 using a card.

It is the cheapest way in the long run, I'd still buy 12 months if I knew I was selling the car in April, as I'd get the overpayment back.

If I bought 6 months with the 10% surcharge, any unused months I claim back on SORN are paid without the 10% so I pay £13.75 a month but would only get back £12.50 per month.

I actually do buy 12 months tax for my 'bike, but SORN it for 6 and get the other 6 months back so I don't pay DVLA a penny more than I absolutely have to, and actually cost them money posting me a refund cheque

AdrianC

worid said:

Perhaps some people have more money than others. I am on a pension so I do watch what I can spend.  This is a pricey time of year for me, as well as the mortgage and general bills this month,  I have house insurance, car insurance, car tax, breakdown tax and TV licence.  I try to buy the insurances yearly.  I don't go on holiday and I don't eat out.  But because of Covid I have managed to inadvertently keep more in the bank, not buying clothes etc helps and I am lucky as my state pension is guaranteed.
I hardly use the car now except for shopping trips but I would not be without it as it gives me personal freedom.  Even when all of us can get out and about, I don't spend more then £30 a month on fuel. So perhaps the difference in price may be a drop in the ocean for some, but not for everyone and I think I manage quite well on less than £11,000 per year.

All the more reason to not spend 5-10% more than you have to. Buying 12mo costs you LESS, not MORE. Sure, there's a cashflow question - if 6mo is easier to fund.

If this is an expensive time of year, buy 6mo now, then 12mo in August.

born_again

worid said:

Perhaps some people have more money than others. I am on a pension so I do watch what I can spend.  This is a pricey time of year for me, as well as the mortgage and general bills this month,  I have house insurance, car insurance, car tax, breakdown tax and TV licence.  I try to buy the insurances yearly.  I don't go on holiday and I don't eat out.  But because of Covid I have managed to inadvertently keep more in the bank, not buying clothes etc helps and I am lucky as my state pension is guaranteed.
I hardly use the car now except for shopping trips but I would not be without it as it gives me personal freedom.  Even when all of us can get out and about, I don't spend more then £30 a month on fuel. So perhaps the difference in price may be a drop in the ocean for some, but not for everyone and I think I manage quite well on less than £11,000 per year.

So why not pay by monthly DD over 12 months ( same cost as 2 x debit card payments) Or do 6 months for now by debit card & then when renewal is due pay for the full year. That way it helps to spread the payments out, rather than everything at the same time of year.

Or in true MSE style.
Set aside so much a month that will cover the renewal of all the policies that are due at this time of the year

worid

Jenni_D said:

Looking again at what has been posted, it seems that they are comparable purchases but the amount charged differs between the payment mechanisms. Is the DVLA exempt from the Consumer Rights (Payment Surcharges) Regulations?

This is what I was getting at when I queried if it was legal to do this.  However I will take on board what everyone has said and pay the full year this time as I have the money.  Next year I may not have the money so I may do as some have advised and pay 6 months then a full year in August.