Luxury Car Tax

suemccord

Our Audi that we bought on PCP a year ago has come up for it's Tax renewal.  I nearly fell off my chair when I saw it was £570! Our dealer did not tell us this when we bought it!  Apparently we have to pay this for the next 5 years.  It's shocking.  We've never paid that in all the years that we've had a car and the roads have never been this bad either! The value of the car was registered at £42000 although we received lots of discounts so apparently got a good deal.
Do we have any come back on the dealer?

Herzlos

Why would you have a come back? It's been a pretty clear and well publicised policy for years now. Cars costing more than £40,000 pay a LOT of tax in the first 5 years, but it's still peanuts compared to the financing and depreciation costs of a £42,000 car.

What really hurt me was when I was paying £495 tax for a car that was worth £500 with a full tank of fuel.

400ixl

suemccord said:

Do we have any come back on the dealer?

It is your responsibility to understand the rules of things like tax when buying a car. Provided the dealer did not lie to you then what come back do you think you have?

Discounts do not change whether it is in the luxury tax bracket as it is the list price which decides.

Mildly_Miffed

It's SEVEN YEARS now since the VED regime last changed.

Flat rate for everything.
Premium for stuff with a £40k+ list price. Not price that you pay, but the LIST price.

And, yes, a £40k+ petrol or diesel car is £570/year.
VED hasn't risen any except by inflation for years.

The last time the applicable regime changed for existing cars, not just new stuff from then on, was the 1990s.

You could argue that bringing BEVs into mainstream VED is a retrospective change - I'd suggest that it's simply removing a loophole that was only ever going to be temporary to encourage early adopters.

You could argue that the £40k threshold should have been increased to reflect the changes in the car market since 2017 - and you may well be right, but the applicable date is still the date of first registration.
"Includes mundane family cars"? Hardly - remember BEVs aren't included (yet?)