Inclusion Of Car Tax In EV PCH

Greendazzer1234

Just wondering if anybody has been mislead by main dealers on whether Car Tax is included within PCH agreements on EV’s?
Took delivery of Kia EV3 in January and Kia dealer confirmed both in writing and verbally that car tax would be included within PCH agreement for the full 4 year term. Now find out it is not

Ayr_Rage

How did you find out that it is not included?

If it is in the contract you signed and you still have the written confirmation from the dealer that contradicts that document go back to the dealer and confront them.

You won't get a definitive answer on t'internet forums.

Mildly_Miffed

RTFC - read the financier's contract.

The confusion has come about because the 2022 Autumn Statement (budget) removed the £0 rate for BEVs, effective as of 1st April 2025.

The change of government last year did not change that plan or the timing.

https://commonslibrary.parliament.uk/research-briefings/cbp-9690/

Only the contract you have signed with the financier will give you a definitive answer. The dealer's statement does not supercede that, but you may have grounds for complaint on their giving you misleading information.

flashg67

It may say that you are liable for any increase in the road tax during the contract, which in your case is more than just a 'normal' annual rise. My last PCH contracts have been just like this but the increase was £5 I think - probably cost them more to invoice & collect my payment.

facade

Don't forget you will have to pay VAT on top of the VED, as the V5 is not in your name, so they cannot treat it as a VAT free disbursement.