Best way to tax car

Alanp

My car tax requires renewal on the 1st of may, however, I’m waiting to get my brand new car, ( which hasn’t even been built yet) which, according to the dealer, they are expecting it on 30th April, I was going to just renew for six months and claim it back when I change cars over but I’ve seen on the renewal that you can pay by dd per month, would this be a better way of doing it. ?, obviously I can inform DVLA, in both cases and cancel the direct debit, I just don’t want te dealer to cash in the remaining months on the car tax , it might as well be in my pocket….

daveyjp

Dealers can no longer cash in unexpired tax.  When you trade the car transfer of ownership should be done online in the showroom and you will then receive a refund.

However if your new car arrives before current tax expires there's no need to buy new tax for your existing vehicle at all.

Alanp

Thanks, I didn’t know that about the dealers and tax, very useful, I’ll hang on as long as possible before I tax it….

Brie

I think you pay extra if you go for monthly.  Only a couple of ££ I think but better in your pocket than elsewhere.

GrumpyDil

Cheapest way is to tax for twelve months and then when you dispose of car you will get a refund for each whole month remaining. 

Six months and monthly will both work slightly more expensive 

Bigwheels1111

I don’t see your issue. Wait until the 1st. Tax if required.
Then refund if necessary.
If new car arrives first all is good.