Vehicle Excise Duty Changes In Budget

[PaulWhitt20]

Budget 2015: Vehicle Excise Duty reform for new cars

http://www.bbc.co.uk/news/business-33447106

Looks like we will loose the free car tax on new cars bought after 2017.

[ColinBarber]

Indeed. Still not as bad for people looking to purchase a high performance vehicle such as the RC F or GS F, they will have an extra £2,000 added to the purchase price!

[PWOOD]

Toyota and Lexus will be hit very hard by this in new car sales in uk when this comes in as will others.

[rayaans]

Indeed. Still not as bad for people looking to purchase a high performance vehicle such as the RC F or GS F, they will have an extra £2,000 added to the purchase price!

£2010 actually, RC-F has 252g/km so misses out on highest band but then have to pay £310 extra! Theyll pay £450 for the next 4 years too. Currently, owners have to pay £860 in the first year and £500 thereafter

The good thing with the new VED bands is that you can buy a 5 year old RC-F and only pay £140 tax lol.

[PWOOD]

5 year old high performance cars will hold value well after 4 years or so. There is a lot you can take from that!!

lexus need electric only vehicles or will loose sales in the lower end of their market. Shame as they seem to be on the up atm.

[jamesm182]

I think people will be buying focusing on MPG rather than the tax from 2017 on. I can't see everyone rushing out to buy an electric vehicle and if all cars are in the same boat I can't see it will affect sales all that much.

[rayaans]

5 year old high performance cars will hold value well after 4 years or so. There is a lot you can take from that!!

lexus need electric only vehicles or will loose sales in the lower end of their market. Shame as they seem to be on the up atm.

Thats not going to happen. Lexus dont want electric cars - I assume theyre going to move to hydrogen instead. Besides, they're mass market is the USA and Canada. They could easily just pull out of the UK and start up in India and they'd get more sales.

[Wass]

The thing is that so called zero emission cars.... aren't. How many emissions do they cost to manufacture and how many emissions do they cost to charge? Most so called zero emission cars have such all weather range issues that it is difficult to find somewhere to use them which doesn't have good public transport. Persons who actually need long range all weather "zero" emission vehicles can not find appropriate vehicles because there aren't any.

This seems like another everywhere is like London scheme. Ill thought out. ..Again.

Looks like its back to the good old gas guzzling days then! Who needs new cars?

[PWOOD]

why they didn't just increase the values on the emmisions scale we currently have so all car owners have to pay something is beyond me. If I keep my current car after 2017 as I understand it I will pay zero but if I buy a new CT I'll pay 140 a year for the privilege.. Makes sense

[wh05apk]

Even better why not just add 5p per litre to the cost of petrol or diesel, the tax is then directly related to how much you use/pollute do is only avoidable by reducing usage or being more economical. It would save a fortune in collecting as well.

[ColinBarber]

5 year old high performance cars will hold value well after 4 years or so. There is a lot you can take from that!!

lexus need electric only vehicles or will loose sales in the lower end of their market. Shame as they seem to be on the up atm.

Most new Lexus sales in the UK are for company car owners so it is BIK that is most important and the total ownership costs. Whilst the BIK percentages are going up across the board the hybrids will still be competitive against diesels.

[PWOOD]

http://www.carmagazine.co.uk/car-news/motoring-issues/2015/budget-2015-how-it-affects-uk-motorists/. BIK seems better thought out and still encourages low emission purchases more.

One of the better links I've found explaining it all.

[rayaans]

Well at the end of the day the roads in the UK are crap compared to the rest of Europe so if if actually gets used to build roads then it'd be worth it.

£500 isn't too bad when buying a £40k + car too

[LexusCT200H]

Really good to hear about this, however it probably wont affect Lexus and Toyota owners, most cars are £0.00 tax.

[KDS]

The point here is that even cars are that are currently 0.00 tax won't be under the new rules that are coming - follow the link on the OP and you'll see that a current low emission zero tax will if a new registration attract a first year charge and a continuing annual charge

Sent from my Iphone using Lexus OC

[rayaans]

The point here is that even cars are that are currently 0.00 tax won't be under the new rules that are coming - follow the link on the OP and you'll see that a current low emission zero tax will if a new registration attract a first year charge and a continuing annual charge

Sent from my iPhone using Lexus OC

Well current cars will remain the same. You will continue paying what you do now. Its only for cars registered after April 2017 where the CT200h will suffer.

[Valkirk]

Toyota and Lexus will be hit very hard by this in new car sales in uk when this comes in as will others.

Think this has been helpful to Lexus in some ways although very hurtful in others - they have said they weren't going to follow other manufacturers with plug ins so they would have been suffering from other manufacturers getting more and more zero rate cars compared to them (especially things like Mercedes ML) however the premium hit for a car costing more than £40k is going to hurt (and I think stupid, it should have still followed some form of emission based - a hybrid RX same as a V10 Lambo?!)

Only bright side is it may encourage cars around that price point to be reduced - expect the NX Premier to become £39,999 :)