And shows just how good a tool this is for encouraging people to buy low-emission vehicles.
Vehicle Excise Duty
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And shows just how good a tool this is for encouraging people to buy low-emission vehicles.
Soldato
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when you think about it like that it's actually even more ridiculous isn't it. It's like being taxed based on a 30k salary when you only earn 12k because you have the potential to earn that much lol.
Or when you look at it in terms of energy security, EU obligations we've signed up to, economy and so forth, on top of how long a vehicle stays in operation passed its sale. It makes perfect sense to try and force people to buy more effecient cars.
More effecient cars means less fuel used over fleet and in 20/30years time, will show just how big an impact it has over the entire fleet.
But the thing is, do people who buy brand new cars really consider VED when buying? I know I never did.
People might consider it for a second hand car when they're paying a few grand and VED is now a significant part of the cost, but that then is just reflected in the prices of second hand cars. Higher VED second hand cars aren't being scrapped early because of it.
Except they won't because a vehicle that costs £1000 VED for the first year isn't going to be a cheap and cheerful motor is it? I've just bought what I consider a fairly powerful sports car, 0-60 in 4.9s and the VED is £315. It's completely insiginificant to the overall cost of the vehicle.When it's £1,000 of the OTR price, then probably yes they do!
c180 g/km of CO2 is hardly bad though for a car that has that kind of performance?
Therefore we can see that what the various taxes and other regulations have done is to provide better, more powerful cars that emit much less co2 (and probably use less fuel as well) than they used to.
Soldato
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But how would increasing duty on fuel in place of VED not achieve the same thing while more fairly distributing cost based upon actual usage?
Of course they do, there's been many spec me a car threads where its important.
There's also many people who have money upfront for one reason or another, but very much want cheap running costs.
People don't take running costs into account as much as clear upfront costs. Which VED is very clear about.
Also I would much rather put it on fuel. But that doesn't achieve part of the governments aim.
You would need to replace it with veritable duty/VAT
VED is also raising far faster than inflation, top couple of bands have more than doubled since introduction. That rate of increase is only going to growing as more and more cars are zero rate and we get closer to our obligations.
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Gotcha.
But surely that depends how much the cars are used?
Ok, maybe not.
But to start with we need to have the cars in the car parc, or else it's all a bit pointless.
Those threads are almost exclusively sub £10k so either second hand or where VED rates are all going to be low regardless, so any choice is illusory.
So there's no difference in VED rates for sub 10k cars and there's no difference in VED rates between very similar cars above 10K
It is a considering point for many people. Even if it isn't for you.
Take top rate, now 1000 and 420, compare to 6 years ago of just £165.
What do you think it's going to be like by the end of the cars life? We've already seen inefficient large cars value des amazed on the second hand market.
It's all one big circle and resale value is a big consideration for a lot of people.
It is a considering point for many people. Even if it isn't for you.
Take top rate, now 1000 and 420, compare to 6 years ago of just £165.
What do you think it's going to be like by the end of the cars life? We've already seen inefficient large cars value des amazed on the second hand market.
It's all one big circle and resale value is a big consideration for a lot of people.
The people asking about low VED cars are almost always sub £10k on here, that sort of money only gets you a small car, with a small efficient engine. For the upfront cost it's almost certainly going to be £0. Even if isn't it, it's only 1-2% of the cars value.So there's no difference in VED rates for sub 10k cars and there's no difference in VED rates between very similar cars above 10K
I thought people only really considered the upfront costs, not the running costs. I doubt anyone really considered the future potential costs for road tax when buying a new car. Even if second hand prices do drop it doesn't force cars off the road, it just makes them cheaper to buy to offset slightly higher VED.
VED is set low enough not impact peoples car choices, but high enough to raise significant revenues for the government.
There's a difference between VED which is clear defined and known, compared to fuel which is entirely unknown and depends on what you drive.
What ever way you look at it VeD influences car sales and hats only going to get more common as prices rise.
It doesn't matter if it's only 1 or 2 %
People who want low running costs are going to go for a model with a lower VED group. Rather than a competitions higher VED group car. Assuming there's little to no other differences.
What ever way you look at it VeD influences car sales and hats only going to get more common as prices rise.
It doesn't matter if it's only 1 or 2 %
People who want low running costs are going to go for a model with a lower VED group. Rather than a competitions higher VED group car. Assuming there's little to no other differences.
But the influence is illusory, the people asking for low VED cars on here, will get a low VED car regardless of what they choose, as there just isn't any high VED cars in their price bracket.
Edit: Corsa, Ka, Kia, Polo, Jazz - they're all £0 VED upfront
It doesn't need to be high. It only need to be next level up. Two cars more or less identical. One in C grouping, one in D grouping. Which is someone who wants low running costs going to buy. This making the fleet more effecient. It's certainly not the only way and it did use to be thecases it made no difference, due to similar prices and not much gap. That's very quickly changing especially with the £0 bracket.
The UBS fleet is much more effecient than it use to be. VED is one way to acheive this.
On top of that what our manufactures going to do? They design cars in a low bracket for the marketing.