VED - New Car

saxopete1991

Hello,

After a bit of advice really - I purchased a new car last year and the garage took care of the first years VED as they have always done before. Today my reminder has arrived with a whopping cost of £490 for 12 months.

Looking into this it appears to be because the car (a diesel) list price with the extras I was sold came in at list price at over £40,000 (£40,095 to be exact) despite my OTR price being £35k.

At no point during the sale of the car and all the extras being added did the sales person warn me or advise me that this would incur a £330 per year levy on the VED for the next 3 years - bearing in mind I have always PCP'd with them and change every 3 years.

I have phoned them up today and said hang on a min this wasn't explained when you sold me the car and when you were offering all these extras -  I feel mis sold to be honest. I did suggest they meet in the middle as the sales person admitted the should have probably mentioned it given the rules changed in 2017!

What do people think? Are a dealer responsible for informing clients of what the VED is likely to be in subsequent years (I appreciate rises etc.) but an extra £330 per year is alot to swallow!

saxopete1991

Update - Garage aren't prepared to do anything.

400ixl

Personally, no, its your responsibility. Just like understanding what the servicing costs are going to be, what the likely costs are for replacing tyres, brakes etc when they need doing, how much will annual insurance likely be, etc.

They are all costs of ownership that a purchaser should understand, and all publicly available.

They haven't misled or mis-sold you in my view, unless you specifically asked what are the VED rates for the car and they didn't answer truthfully.

born_again

Vehicles with a list price of more than £40,000

So did they discount the price list price? as extra's are not counted.

https://www.gov.uk/vehicle-tax-rate-tables

Keep_pedalling

born_again said:

Vehicles with a list price of more than £40,000

So did they discount the price list price? as extra's are not counted.

https://www.gov.uk/vehicle-tax-rate-tables

Optional factory fitted extras are counted in the total list price for calculating the extra VED payments, so a £100 option that tips the LP over £40k will cost the OP £1,775 over 5 years. 

Grumpy_chap

born_again said:

So did they discount the price list price? as extra's are not counted.

I don't believe that is correct (extra's not counted).

If you buy a car with a list price of £39,750 and then add metallic paint at £500 that makes the list price £40,250.  If the Dealer gives you a discount of £5,250 then you only pay £35k.  The list price is unchanged by the discount.  The list price is changed by the options.

saxopete1991 said:

Hello,

After a bit of advice really - I purchased a new car last year and the garage took care of the first years VED as they have always done before. Today my reminder has arrived with a whopping cost of £490 for 12 months.

Looking into this it appears to be because the car (a diesel) list price with the extras I was sold came in at list price at over £40,000 (£40,095 to be exact) despite my OTR price being £35k.

At no point during the sale of the car and all the extras being added did the sales person warn me or advise me that this would incur a £330 per year levy on the VED for the next 3 years - bearing in mind I have always PCP'd with them and change every 3 years.

I have phoned them up today and said hang on a min this wasn't explained when you sold me the car and when you were offering all these extras -  I feel mis sold to be honest. I did suggest they meet in the middle as the sales person admitted the should have probably mentioned it given the rules changed in 2017!

What do people think? Are a dealer responsible for informing clients of what the VED is likely to be in subsequent years (I appreciate rises etc.) but an extra £330 per year is alot to swallow!

That would be nice  

Sadly, most people employed in a sales role are under pressure to seal-the-deal irrespective of any other outcomes, and the employee's mortgage payments that month often depend upon it.  No matter how nice the individual is, the reality of "sell or fail" soon bites and changes their character (at work at least).  

Keep_pedalling

Grumpy_chap said:

born_again said:

So did they discount the price list price? as extra's are not counted.

I don't believe that is correct (extra's not counted).

If you buy a car with a list price of £39,750 and then add metallic paint at £500 that makes the list price £40,250.  If the Dealer gives you a discount of £5,250 then you only pay £35k.  The list price is unchanged by the discount.  The list price is changed by the options.

saxopete1991 said:

Hello,

After a bit of advice really - I purchased a new car last year and the garage took care of the first years VED as they have always done before. Today my reminder has arrived with a whopping cost of £490 for 12 months.

Looking into this it appears to be because the car (a diesel) list price with the extras I was sold came in at list price at over £40,000 (£40,095 to be exact) despite my OTR price being £35k.

At no point during the sale of the car and all the extras being added did the sales person warn me or advise me that this would incur a £330 per year levy on the VED for the next 3 years - bearing in mind I have always PCP'd with them and change every 3 years.

I have phoned them up today and said hang on a min this wasn't explained when you sold me the car and when you were offering all these extras -  I feel mis sold to be honest. I did suggest they meet in the middle as the sales person admitted the should have probably mentioned it given the rules changed in 2017!

What do people think? Are a dealer responsible for informing clients of what the VED is likely to be in subsequent years (I appreciate rises etc.) but an extra £330 per year is alot to swallow!

That would be nice  

Sadly, most people employed in a sales role are under pressure to seal-the-deal irrespective of any other outcomes, and the employee's mortgage payments that month often depend upon it.  No matter how nice the individual is, the reality of "sell or fail" soon bites and changes their character (at work at least).  

And sadly some buyers don’t ask crucial questions, like how much VED will I be paying on this build. 

born_again

Yep seems you folks are right. Which i guess stops manufactures fiddling car to under 40K. 

jimjames

Keep_pedalling said:

Grumpy_chap said:

born_again said:

So did they discount the price list price? as extra's are not counted.

I don't believe that is correct (extra's not counted).

If you buy a car with a list price of £39,750 and then add metallic paint at £500 that makes the list price £40,250.  If the Dealer gives you a discount of £5,250 then you only pay £35k.  The list price is unchanged by the discount.  The list price is changed by the options.

saxopete1991 said:

Hello,

After a bit of advice really - I purchased a new car last year and the garage took care of the first years VED as they have always done before. Today my reminder has arrived with a whopping cost of £490 for 12 months.

Looking into this it appears to be because the car (a diesel) list price with the extras I was sold came in at list price at over £40,000 (£40,095 to be exact) despite my OTR price being £35k.

At no point during the sale of the car and all the extras being added did the sales person warn me or advise me that this would incur a £330 per year levy on the VED for the next 3 years - bearing in mind I have always PCP'd with them and change every 3 years.

I have phoned them up today and said hang on a min this wasn't explained when you sold me the car and when you were offering all these extras -  I feel mis sold to be honest. I did suggest they meet in the middle as the sales person admitted the should have probably mentioned it given the rules changed in 2017!

What do people think? Are a dealer responsible for informing clients of what the VED is likely to be in subsequent years (I appreciate rises etc.) but an extra £330 per year is alot to swallow!

That would be nice  

Sadly, most people employed in a sales role are under pressure to seal-the-deal irrespective of any other outcomes, and the employee's mortgage payments that month often depend upon it.  No matter how nice the individual is, the reality of "sell or fail" soon bites and changes their character (at work at least).  

And sadly some buyers don’t ask crucial questions, like how much VED will I be paying on this build. 

The salesperson might not even know either 

photome

No I dont think a dealer has to inform "punters " how much tax will be in future years, I do think the buyer should ask ,if its important

or a quick google would tell you

Grumpy_chap

jimjames said:

The salesperson might not even know either 

Particularly as I understand the "list price" that determines the VED band is that in force at close of business the day before first registration. 

It can be entirely possible for a car with a list price of, say £39k, at the time the order is placed to pass through a price review point and be above the £40k threshold by the time the car is registered.  Even more likely to happen with the very long lead times that seem to be current.