Car Tax (VED) and surcharges what a scam?

Graydog7

I have recently changed cars from a Saloon to an Estate to carry a wheelchair and I hurriedly set up my car tax from my phone at the sellers home. I was initially very surprised at how high it was having changed from a diesel SAAB to  petrol one so just opted for 6 months costing £371 that’s £742 for the year. Later when I got home I checked the rates again and found that although it was still high a years tax would have been £675. It turns out that there is a 10% surcharge for paying 6 monthly yet only 5% for a monthly Direct Debit. 

How is it fair or reasonable to charge an additional 10% surcharge on a service you pay in advance for? It’s not like buying a sofa on credit where you take possession of it immediately, and how is the surcharge on monthly payments half of the 6 month rate?

I realise this is the Government and they can do as they please where motorists are concerned but I really don’t understand it or why the motoring organisations and groups aren’t up in arms about it too. 

Also, why isn't there a mileage based system? Last year we only did 700 miles in our previous diesel SAAB, If we do the same again this year that will be £2 a day before putting any fuel in it. My emissions based on actual usage are probably lower than zero rated hybrid cars and  don't even get me started on how heavy they are, tearing up the road surfaces and how existing multistorey car parks are going to cope with the extra weight when everyone has one.

Car_54

If you pay for six months, you are effectively ‘borrowing’ £67 (the difference between the 12 and 6-month rates) for six months, which DVLA has to finance. If you pay monthly, the amount outstanding (and hence the finance cost) reduces every month. That is reflected in the lower surcharge.

Graydog7

Car_54 said:

which DVLA has to finance. 

Really? That makes no sense.

Herzlos

Graydog7 said:

Also, why isn't there a mileage based system? Last year we only did 700 miles in our previous diesel SAAB, If we do the same again this year that will be £2 a day before putting any fuel in it.

Most people do enough mileage that it doesn't really make sense.

At 700 miles a year, are you not going to be better off with taxis? Most should be able to take a wheel chair.

That's barely 2 miles a day, or 13.5 miles a week.

Or get something that's older than 2006 which I think is when the higher 2 bands came in.

Graydog7

Herzlos said:

At 700 miles a year, are you not going to be better off with taxis?

Or get something that's older than 2006 which I think is when the higher 2 bands came in.

Thanks, but Taxi's are no replacement for the convenience of having you own car in the driveway and older cars are more likely to break down.

CliveOfIndia

Really, at 700 miles a year the "fixed annual" costs such as tax, insurance and MOT become disproportionately high if you try to work it out as cost per mile.  And if you buy carefully and take your time, there's no reason why an older car should be all that more unreliable.

Yes, of course one would hope that a new car won't suffer any catastrophic faults in the first few years.  But equally, I've always run older cars (usually buy them at 7 - 10 years old and keep them for years) and I've never had any faults other than routine wear-and-tear items.

It's your call, of course, and I completely take your point about the convenience - but for that sort of mileage, a new/new-ish car is a very expensive luxury.

Krakkkers

£742 a year road tax? really? wow.
I have a Diesel Focus ST chipped to 240 HP and its £20 a year ( no option for 6 months)

Graydog7

Krakkkers said:

£742 a year road tax? really? wow.
I have a Diesel Focus ST chipped to 240 HP and its £20 a year ( no option for 6 months)

( no option for 6 months) HaHa. cool

Mines an 08 9-5 SAAB Estate 2.0

Abbafan1972

We have a Mercedes GLC and the tax for that is just over £500 a year. We pay £45.50 a month by DD. Ours is something to do with the value of car and this high tax is only for the 1st 5 years of the cars life. We didn’t know this until we’d already chosen the car. 

We had a Focus a while back that was only £20 a year tax. 

facade

It's an admin thing.

If you pay twice a year it costs them more in admin dealing with 2 payments not one, so they charge 10% extra for both to cover it.

If you pay 12 times a year it costs them more in admin dealing with 12 payments not one so they charge 5% extra for all 12 to cover it.

(They just rip us off because they can )

Graydog7

facade said:

It's an admin thing.

If you pay twice a year it costs them more in admin dealing with 2 payments not one, so they charge 10% extra for both to cover it.

£67.50 to acknowledge a payment every 6 months. Sounds like a job for me :0)