A new "showroom tax" RFL rate comes into effect on April 1st. I am getting flooded with enquiries about road tax; to me people are disproportionately concerned with this as it pales into insignificance compared to other costs. But, it does bother people.
However, I have made a table which shows the effects on new cars registered after April 1st (also has the difference in new rates vs current rates shown).
Anything up to CO2 band G has either a saving or a very slight increase. Band G is the watershed really. Higher band cars increase more significantly with a band M car having a cumulative total £635 increase over the next 4-years.
Band D cars are the biggest savers, saving £210 over 4-years compared with current rates. It's not all bad news!
My table is here: www.lingscars.com/roadtax.pdf
My view is that it's pretty equitable and welcome - will certainly encourage a drift into more economical cars, if not cause it. I can imagine residual values increasing on smaller cars and decreasing on larger cars by a hundred pounds or so, though that is stating the obvious I suppose.
The industry bodies have generally been against the changes, but I must say, I see a more polarised VED table as a good thing. Why not?
Ling
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The changes will save me £35 :).
The sort of cars this mainly effects are so expensive that it is probably half an hours wage to people that are buying those sort of cars.
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>> The sort of cars this mainly effects are so expensive that it is probably half
>> an hours wage to people that are buying those sort of cars.
>>
And are probably company cars with the RFL included in the lease cost.
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What I don't like about it is I am getting a brand new car, it qualifies for zero rate VED in the first year. My father pays about £130 a year to tax his 13 year old Fiesta. He drives a 13 year old Fiesta because he can't afford anything else and it sometimes is a major struggle to paid the VED.
The Fiesta emits 160k/gm and the Panda is 119 something dosn't seem right. Although the Fiesta may emit a lot more than now!!
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It'll all pale into insignificance when the next govt or the one after starts road pricing, by then most cars on the road will be small economical and almost VED free, probably a growing number of even more economical (tax dodging) electric or hybrids, encouraged by present taxation and other costs.
No one seriously thinks any likely future govt is going to allow cheap 'unmonitored' low tax motoring to continue.
The costs of the big stuff won't matter a jot to those that can afford them or get them provided (minister's limo's being one example) but will make a huge impact on their dropping prices as they age and VED becomes an ever increasing percentage of overall costs.
You'll see them in their hundreds on the docks at Sheerness Southampton etc joining the thousands that already exit that way already for slightly different reasons, good for the environment you know.
Nice easy to read spreadsheet though Ling, thanks.
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>> It'll all pale into insignificance when the next govt or the one after starts road
>> pricing
>>
>> No one seriously thinks any likely future govt is going to allow cheap 'unmonitored' low
>> tax motoring to continue.
I hope and expect that we won't have "road pricing". I do not want hordes of "officials" and others knowing exactly where I've driven, as well as knowing who I've called on the telephone, and when, as well as my exact medical condition, etc. etc.
If you weren't alluding to such, then OK - but it would be more reasonable and acceptable to double fuel duty than it would be to impose "road pricing".
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>> I hope and expect that we won't have "road pricing". I do not want hordes
>> of "officials" and others knowing exactly where I've driven as well as knowing who I've
>> called on the telephone and when as well as my exact medical condition etc. etc.
>>
>>
Is that Bob Hope ?
SPECs cameras which are being left behind once roadworks are completed know your number plate, where you are, how far you have travelled.
Not a major leap from average speed cameras to road pricing cameras is it ?
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>> Not a major leap from average speed cameras to road pricing cameras is it ?
>>
Or from the thousands of covert ANPR cameras on trunk routes and at choke points.
Last edited by: Old Navy on Tue 30 Mar 10 at 14:33
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>> SPECs cameras which are being left behind once roadworks are completed know
>> your number plate where you are how far you have travelled.
>>
>> Not a major leap from average speed cameras to road pricing cameras is it ?
Not in terms of mechanics, but AFAIK these records are not currently kept on a single database. *That* is the major (and unacceptable) leap.
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Why would it have to be on a single database?
Billing could be invoiced and used by the authority on whos roads you have driven.
The Government are currently throwing money at local authorities who come up with their own traffic management system - congestion charge zones being an example.
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Cut out some of the frivolous spending on riotous living and you won't notice any increase in VED.
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Wait a cotton picking minute here.
Our Smart Roadster is going down 30 pounds, it's in Band D. So far so good.
But brand new cars in Band D will have one year free and then pay 45 pounds per annum.
Why will I have to pay 90 pounds for our 2005 Band D car when April 2010 onwards Band D cars will pay only £45?
What's up with that?
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The French have long had taxation based on a car's horse power, which is why they tend to be better at making small cars than big cars. If you have to tax cars, it seems the second fairest way (after putting it all on fuel).
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>> If you have to tax cars...
I guess that's the bigger picture - *why* do cars have to have a fixed amount of road-tax?
Higher CO2 cars use more fuel (the two are almost directly linked) so buying more fuel means paying more fuel duty and VAT.
The government taxes larger cars more simply because it can.
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>> the two are almost directly linked
They are directly linked - I thought the government fuel economy figures were back-calculated from the CO2 emissions figure?
Last edited by: Dave_TD {P} on Tue 30 Mar 10 at 23:22
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>> >> the two are almost directly linked
>>
>> They are directly linked - I thought the government fuel economy figures were back-calculated from
>> the CO2 emissions figure?
>>
I did too, and I'm certain they used to be.
However they seem to have changed the testing method now and apparently the fuel is measured.
Not sure how they do this with fuel injecton systems which constantly recirculate the fuel though!
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>> >> (higher CO2 emissions/fuel consumption) the two are almost directly linked
>>
>> They b>are directly linked
Only loosely. You can't say "that car produces X grammes of CO2 per mile, so it does Y MPG, but that car produces X+a grammes of CO2 per mile, so must do Y+b MPG".
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According to this www.timesonline.co.uk/tol/driving/features/article2214542.ece it's all done on a rolling road, which seems reasonable.
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miketibbettcars.com/site_page.php?page=10
"Combined mpg manual
Official fuel consumption figures are calculated using a specific series of tests prescribed by the EU. Car makers are not allowed to publish their own fuel consumption figures; they MUST only publish official government figures, of which this is one."
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If I'd been paying more attention, I would have gone to the PO before today and saved £18, instead of ending up an April fool :(
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If I'd been paying more attention, I would have gone to the PO today and saved £15, instead of ending up an April fool :(
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Showroom Tax and effects of tax rate change 1 Apr - RattleandSmoke
