Read my post again. My whole point was the fact it was on RRP and NOT INVOICE PRICE. I know the ******* difference!
This is the issue really. £40k is too low a boundary. Or there needs to be another one even higher up.
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New car Road Tax confusion
- Thread starter wizard
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Other than the typo of “is” instead of “it’s”, it’s pretty clear. I’m not upset. You’re an oddball, and an unnecessarily rude one at that.
Being able to afford something and being comfortable paying it are two different things. Personally, a car that will incur luxury tax is very off-putting as it's just money down the drain. It would have to be something with a really massive discount to appeal, given the first couple of K are swallowed up just on tax.
Perfect example of this is the Mustang V8. A few years ago, there was an opportunity whereby the tax changed so it dropped from like £515/year or whatever (emissions based) to the new system of £140/year. At the time, the base spec Mustang was under £40k list. So if you bought one second hand first registered April 2017, then you'd avoid high emissions tax, avoid luxury car tax, and avoid first year tax surcharge. But now the list price has gone up over £40k I think so the opportunity has passed.
That said, personally I don't think it needs to rise with inflation, if more and more cars get sucked into the luxury bracket and helps boost tax revenue then so be it, they will need to do something to offset reduced fuel tax revenue. £40k is still 'luxury' territory in that most cars you can buy for over £40k have a cheaper alternative available of the same size. Technically people don't need a flash Audi or Merc SUV, they could get one from a more budget oriented marque.
Remember this only applies the first 5 years as well. The average bloke on the street isn't buying a £40k+ list motor until it's a few years old at least. So the bulk of that tax is getting paid by the flash harrys rolling around in new metal
Soldato
If you're just edging over the boundary then tick a few more options and really go for it. Go hard or go home
We found that on our Lexus when buying second hand. The RRP was £39,995 or something like that in a flat black colour which looked a bit daft, but then the amount of cars i saw specced with nothing else but a change of colour was crazy. I get the non-metallic black wasn't the best colour but the cost of changing just the paint would've been around £2k in total.
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The 2k he quotes is inclusive of the tax difference.
Soldato
Sorry, was including the tax hike in that £2k. I think the base price for metallic paint was ~£1k, then the £350/yr tax hike for 3 years taking it to 2k. Just seems a lot and i'd struggle to justify it myself if buying new.
Hell, i begrudge paying the extra tax on a used car. I feel it should be exempt on used cars after a certain age. The people buying that £40k a few years down the line for £20k are unlikely to be in the same position and the fact it lasts 6 years seems a bit daft.
Although at the same time i can't really think of a better way to do it to bring in the same revenue, other than maybe have a more tiered system to tax cars >£60k and then >£80k etc at higher bands but then only run it for 3 years.
Soldato
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I assume all electric cars are exempt from this tax or is that not true?
Exempt until 2025