It originally said Bugatti Chrion, lol.
Should the 'luxury car tax' threshold be raised?
- Thread starter HangTime
- Start date
hysteria aside, does look like you can get a 320iM for sub £40K (and presumably one without crashy suspension for even less) ,
so even with inflation+semi-conductor issues, choice is not that restrictive.
sep 21 > https://www.buyacar.co.uk/cars/affordable-cars/cars-under-40000/1169/best-new-cars-for-under-40000
Soldato
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Does the microchip shortage affect the cost of new cars, I thought it just made them rarer to come by and I wouldn't have thought the rrp would be higher (as that's what the tax is based on iirc).
agree in so much that SC shortage has reduced supply, prices have been increased by manufacturers to try and maintain their profits, plus, price hike incorporates impact of extended delivery time (with ongoing inflation, energy prices) .. the sub 40K car becomes rarer.
deliveries still dropping
No. Its a reasonable cap.
40k is a lot of Money for a car.
I can't ever see myself having 40k to spend on a car. Not even half that.
It would wipe off 1/5 of my mortgage. Or pay for holidays for next 10-15 years.
40k is a lot of money!
40k is a lot of Money for a car.
I can't ever see myself having 40k to spend on a car. Not even half that.
It would wipe off 1/5 of my mortgage. Or pay for holidays for next 10-15 years.
40k is a lot of money!
Soldato
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But as above, people don't pay 40, they only see 500/600 a month and get this massive tax.
I can't believe how much people on average wages pay for new cars. Even if there was no interest. It makes no sense to me
Only 500/600 a month...Guess I need a much better paying job as that really is a lot of money to pay out monthly for just a car compared to my income
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As has been said earlier in the thread, it's not just about paying £40k for a car, it's also about buying cars for less than £40k that were £40k when new. In a normal market a car might depreciate 50% within 3 years so the tax bill would also hit people paying less than half of £40k in the later years.
It's possible to spend over £40k list, less than £35k out the door and with a tiny deposit pay about £400 a month.
Over the last 10 years, the average price of a new car went from £28k to £38k. The £40k figure is now outdated if the thinking behind it remans the same.
Over the last 10 years, the average price of a new car went from £28k to £38k. The £40k figure is now outdated if the thinking behind it remans the same.
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And then have to pay more than 10% of that monthly amount every month just for the vehicle excise duty.
Meanwhile, if you pay £500,000 for a Ferrari, you'll pay the same amount for your vehicle excise duty.
How does this make any sense?
Now this is the real issue with this tax - at least with other 'value' taxes you generally pay more the more you spend.
Why doesnt it?
Given that 500k Ferrari OTR has already paid 83k+change in VAT vs the 6.5k of a 40k car, why should the Ferrari owner then have to pay additional rates to use the car they just purchased and paid more in tax on that that 40k ever will in its entire lifetime.
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A fair point. So why does the BMW 320i M Sport with sunroof and leather seats have to pay additional rates over the identical car with neither of those things?
Could you please clarify how much VAT the Ferrari has paid if he bought his car used, by the way?
Could you please clarify how much VAT the Ferrari has paid if he bought his car used, by the way?
It would depend it it was vat qualifying or not.
Ah, fair share, ok lets roll with that, given VED is emissions based, if you wanted to pay a fair share the Ferrari owner should probably pay less as he is more often than not going to be doing *substantially* less mileage than a 40k workhorse and putting out a lot less in emissions.
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I know once you hit a certain wealth you feel you can pick and choose what applies to you (see: revving your illegal exhaust'ed lambo in Morrisons) but that isn't how it works. The current luxury car tax is like a poll tax. It has nothing to do with emissions or car utilisation.
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You seem particularly bitter today.
But you're the one blabbering on about "paying fair share".
Im pointing out that in terms of the money going to the government coffers, the person buying the Ferrari has already paid more than his fair share to a tune of multiples of the 40k car.
The person originally buying the Ferrari*
And no they haven't paid "more than their fair share". They have paid in percentage terms, far less than someone who can't afford a Ferrari.