New Volvo XC40 - Car tax question that is taking a dealer ages to answer....

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Went to a local Volvo garage at the weekend and ended up putting our name down for an a new XC40 Plus Black Edition on a PCP deal. This is the first new car i've ever bought in my 20+ years of car ownership and the first car i've bought full stop in about 12 years, so not exactly completely up to speed on all recent laws, legislation, tax etc regarding cars. However everything was fine with the financials, gave all details, set all accounts up wth Volvo and passed the finance check.

One thing I asked the sales person about whilst going over the car was about the tax and he assured me it was one of the lower car taxes (under £200) which was fine and I didn't query it any further. Now today I come to check the paperwork before signing any docs and noticed on the order form the Road Fund Licence is down as £670. This took me by surprise as I was expecting this to be like the £190 or something similar that he mentioned. After querying it with the Volvo garage they then explained that the car is subject to a luxury car tax because it is over £40,000, I explained I wasn't happy as they completely glossed over that part but whilst on the phone to them I noticed that the order form total for the car was actually less than £40,000, but the addition of the £670 Road Fund License and £55 Registration Fee is what takes it over the £40,000.

I explain this to the sales person and he has said he needs to check with Volvo directly and have the VIN number checked of the vehicle to find out whats going on.

I did a bit more Googling and even Volvo's 2025 XC40 pricelist lists that model as £39,995 P11D value and £39,195 list price (with OTR price of £40,720) and these are the figures represented on my order form wth Volvo.

I know my first year car tax on a new car is a bit more but the sales person, despite having this info, still couldn't confirm what the car tax would be after year 1 and he has had to escalate this internally to find out. In my view its pretty cut and dry?
It seems a minor thing but it did cross my mind to cancel the order, more out of principal as they've been very sneaky about what should be in the higher tax and the salesman glossed over it completely.

Anyone any ideas of what might be going on? Or if i'm working it out incorrectly. Find it strange how the chap in Volvo couldn't really answer it indefinitely with me too and he needed to speak to higher ups at Volvo.

Another weird thing I noticed, the Black Edition does 152g/km on Emissions but the normal Plus does 149g/km, anyone know why it would be different on a car that is essentially the same aside from some slight styling tweaks (different alloys and tints)?
The 152g/km pushes the initial year road tax up from £260 to £670 which is also hefty for what is exactly the same car.
 
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I did a bit more Googling and even Volvo's 2025 XC40 pricelist lists that model as £39,995 P11D value and £39,195 list price (with OTR price of £40,720) and these are the figures represented on my order form wth Volvo.

Vehicles with a list price of more than £40,000​

You have to pay an extra £410 a year if you have a car or motorhome with a ‘list price’ of more than £40,000. You do not have to pay this if you have a zero emission vehicle.

The list price is the published price of the vehicle before it’s registered for the first time. It’s the price before any discounts are applied.

You only have to pay this rate for 5 years (from the second time the vehicle is taxed).

Check the list price with your dealer so you know how much vehicle tax you’ll have to pay.
"Before registered" i.e. not including the first year of tax as the OTR price shows.

So I think you should be ok on the expensive car supplement at £39,195.

Another weird thing I noticed, the Black Edition does 152g/km on Emissions but the normal Plus does 149g/km, anyone know why it would be different on a car that is essentially the same aside from some slight styling tweaks (different alloys and tints)?
The 152g/km pushes the initial year road tax up from £260 to £670 which is also hefty for what is exactly the same car.

Because things like different sized wheels, different aerodynamics, different weight etc. can effect emissions tests as the properties of the car will be slightly different. The wheels are probably bigger which often results in small increases to reported emissions.
 
Just to say even if it were to be over £40k you're only talking like ~£50, if you pay monthly for the road tax. I personally wouldn't cancel either way, you're getting a nice motor. Enjoy.
 
I'm just finding it weird that the dealer couldn't tell me there and then for definite, when they sell these cars day in, day out.
 
maybe check out car tax on dvla site for other identical vehicles from Autotrader ... to ensure no error ?
The DVLA website confirms what I thought that the first year tax is £660 but doesn't really help confirm what second year is.

However everything I'm reading on my order forms and Volvo site show the car as being under £40k list.
 
The DVLA website confirms what I thought that the first year tax is £660 but doesn't really help confirm what second year is.

However everything I'm reading on my order forms and Volvo site show the car as being under £40k list.

I'm not 100% sure on the details but there are changes coming in 2025 to new cars over 100g/km which may or may not affect you - which basically double first year VED.
 
The DVLA website confirms what I thought that the first year tax is £660 but doesn't really help confirm what second year is.

However everything I'm reading on my order forms and Volvo site show the car as being under £40k list.
Is it distinctly under 40 or is it over 40 plus discounts?

I wouldn't be buying any car on the boundary of 40k. Seems daft to waste 1500 quid at least over 3 years.
 
I'm not 100% sure on the details but there are changes coming in 2025 to new cars over 100g/km which may or may not affect you - which basically double first year VED.

This is the only thing that's potentially going to impact you @R.O.S.S.I , depending on when the car is due for delivery.

If it's registered after 6 April 2025 when the new tax year starts, then the first year VED will be £1360 instead of the £670 listed on your paperwork.

Assuming you haven't added any options to the car and just bought a totally standard unoptioned, no colour change, nothing else added XC40 B3 Plus Black Edition, then your list price is below £40,000 (£39,195) and you don't need to worry about getting hit with expensive car supplement - they've confused the issue by even mentioning this in relation to the £670 first year VED you spotted, probably because they're used to seeing people buy the lower trim models under 150g/km that only attract £260 first year VED at the moment.

I'm not 100% sure on the details but there are changes coming in 2025 to new cars over 100g/km which may or may not affect you - which basically double first year VED.

For completeness of information - it's not only stuff over 100g/km, pretty much everything is getting hit to some degree.

BandCurrent 'Reduced Rate' (Standard is +£10)25/26 Tax Year
0010
1-500110
51-7520130
76-90125270
91-100165350
101-110185390
111-130210440
131-150260540
151-1706701360
171-19010852190
191-22516403300
226-25523304680
256+27355490
 
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yes those new first year tax rates are shocking .... and people said the government isn't deterring ICE purchase, with double whammy from luxury car tax on top.

The DVLA website confirms what I thought that the first year tax is £660 but doesn't really help confirm what second year is.

However everything I'm reading on my order forms and Volvo site show the car as being under £40k list.
2nd year for non-luxury seems to be the £190 mild hybrid ? https://www.gov.uk/vehicle-tax-rate-tables, so you should be safe, if the govt don't change that for all of us in the interim.
 
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