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VED changes April 2017 - brum

Given the changes to VED next April, is anyone contemplating buying a new car before then specifically to lock in the zero or low rate bands which will disappear for new cars?

Am in 2 minds myself, as all my present cars are still going well and I usually run them into the ground, before buying new replacements to get max value. The Alhambra tdi is over 18 years old and costs an very unfair 235 a year in ved, I only do about 4k a year in it now, but really attached to it and would be a shame to scrap such a versatile and economical (50 mpg) vehicle for peanuts but the annual tax/mot/repairs/maintenance is more than I spend on diesel!!

On the other hand new car prices are getting ridiculous and am really scared that maintenance/repair costs of these tech laden cars may turn out to be astronomical.

I cannot undersand why they are keeping the old rates for current cars and changing pnly for newly registered cars, is this just a ploy to boost new car sales? And will they change the system later to nuke the older zero/low rates?

VED changes April 2017 - Wackyracer

The cost of changing a car for a new one just to save a couple of hundred quid a year on VED is a non starter for me and always has been.

A car will typically lose 50% of it's value in the first 3 years, so for a £14,000 car that is going to be £2300 ish per year. None of my cars cost more than £600 per car, per year for everything (except fuel), so I'd be on a loss right away.

Edited by Wackyracer on 22/12/2016 at 13:39

VED changes April 2017 - daveyjp

VED has never been retrospective and I don't expect this to change.

The new rate does mean that in 2018 I can start looking at used vehicles registered from April 2017 which, prior to that date, would have been in much higher bands.

VED changes April 2017 - The Gingerous One

As I already pay £500/yr VED, I wanted the new legislation to be backdated so I would pay less and many many other people pay more.

Alas, it was not to be........

yours

paying.for.the.state.pension.and.child.benefit.plus.foriegn.aid.and.stuff.from.my.VED@the north

VED changes April 2017 - skidpan

My car was due to be replaced next year. Normally swap every 3 - 5 years and its 4 in June. The other factor is the Leon is too small for our current needs. The purchase date was to be decided by the VED group of the chosen car and the winner, the Skoda Superb 1.4 TSi is 115 CO's thus currently £30 a year (like the Leon). So its due for delivery in March before the change.

Will be the last one I get at this annual cost so I will make the most of it.

VED changes April 2017 - brum

Yep the skoda superb 1.4tsi was the car that caught my fancy. £30 ved. £140 after April 5. Over 15 years thats £1650

Edited by brum on 22/12/2016 at 20:43

VED changes April 2017 - gordonbennet

Going to be interesting in about ten years when VED costs or savings take on significantly compared to a car's value at the time.

For example how easy it is to sell for more money a pre March 06 regd high emission car than one a year or more newer which then gets a £500VED penalty, my own Landcruiser is in this position and i would not have bought one regd after Mar 06 solely for the VED reasons.

In high group cars regd from next year its likely to be a reversal of fortunes where the newer car wins when its older, if that makes any sense.

As for a govt presiding over a faltering massively in debt economy, i would put nothing last them when it comes to raising some wonga to kick national bankruptcy down the road, you cannot trust or hope to second guess what they might do to raise money.

Edited by gordonbennet on 22/12/2016 at 21:15

VED changes April 2017 - brum

A very good point. So not just ved savings during ownership but also enhanced second hand value.

VED changes April 2017 - RT

The only cars paying an ongoing current rate over £285 are those registered between 2006-2017 with emissions exceeding 225 g/km - a low number of mainly luxury or high performance car for which costs are relatively unimportant.

The difference in VED for cars in groups G-K (151-225 g/km) compared to the £140 flat rate will be just £35-145 - enough to influence new car sales but will have little effect on used prices.

I drive a big 3.0 diesel SUV getting 29mpg, a gas-guzzler to most people, but I'm only paying £210 now so not a lot of difference.

People by cars based on functional need and image, in varying proportions, I don't see that changing.