NEW CAR ROAD TAX CAR PRICE INFLATION

MARK_KELYNACK

Morning All.

   I ordered and put a deposit on a new car last June, the price then was £37'900 which was ordered because it was nicely under the road tax bracket. Over the months the car has gone up in price bearing in mind I haven't got the car yet the price is now £41'765 which is over the 40k tax bracket. Now year 3 - 5 instead of paying Zero I will be paying £355.

   I would like some advise on this please so that I can arm myself before picking the car up in the coming weeks.

Herzlos

I think the car dealer or VOSA would be your best bet, but I suspect the tax is based on the list price the day it's registered and not when it was ordered. So you're going to be stuck with the higher tax rate even if you are saving nearly £4k on the car itself.

Jenni_D

Ask them for a discount of £1,065 to cover your additional costs that they (as they represent the manufacturer) have caused?

Question: where do VOSA/whoever get the list price from by which to determine the tax classification?

MARK_KELYNACK

I am still paying the original amount which is below the 40k threshold but VOSA go on the registered value, as the car wasnt registered when I ordered it and will be when I collect it will be registered at the retail price.

Jenni_D

My question stands - where does that retail price come from? Who sets it? Who gives that information to VOSA*?

* Should that be DVSA? And were VOSA/DVSA the agency responsible for vehicle taxation?

Genuine questions as I don't know the answers.

MARK_KELYNACK

Herzlos said:

I think the car dealer or VOSA would be your best bet, but I suspect the tax is based on the list price the day it's registered and not when it was ordered. So you're going to be stuck with the higher tax rate even if you are saving nearly £4k on the car itself.

Doesnt help when I get to sell it on. To be honest the price increase isnt my fault. Will drop VOSA a line

daveyjp

When the dealer completes details for first registration (form V55/4) they have to provide the list price which is provided by the manufacturer.

Car_54

Jenni_D said:

My question stands - where does that retail price come from? Who sets it? Who gives that information to VOSA*?

* Should that be DVSA? And were VOSA/DVSA the agency responsible for vehicle taxation?

Genuine questions as I don't know the answers.

The "list price" is the recommended retail price, set by the manufacturer.
VOSA ceased to exist about 10 years ago, and became part of DVSA. AFAIK they have nothing whatever to do either with tax or car prices. DVLA are responsible for collecting the tax, but not for determining the rates.

MARK_KELYNACK

So then the Dealer can fill out the forms and sort the price.. I am waiting for a call back from them.

Grumpy_chap

MARK_KELYNACK said:

So then the Dealer can fill out the forms and sort the price.. I am waiting for a call back from them.

What do you mean by "sort the price"?
The road tax bands are determined on the manufacturer's list price for the vehicle on the day before first registration.  That is not something the local Dealer can "sort".  

As Jenni said, the best resolution would be a further discount to cover the additional VED liability.  It is not guaranteed that the Dealer will oblige as, given the current car market, the Dealer could likely sell that car at the new list price without needing to give the discount (that the original price now reflects) or the VED mitigation.

Herzlos

It depends if the dealer just enters a price and can use the old one, or if the pricing is selected from a list and the dealer doesn't have the same leeway. The price includes options, doesn't it? So there must be some leeway to at least increase the price.